Subscribe
E-Paper
 |
| Lotte Chemical Vice President Shin Yoo-yeol / Courtesy of Lotte Group |
Shin Yoo-yeol, vice president at Lotte Chemical and the eldest son of Lotte Group Chairman Shin Dong-bin, is extending his status as a third-generation successor of the conglomerate, as he was recently tapped to concurrently lead Japan-based Lotte Financial Corp., in addition to his current role at Lotte Chemical.
According to the group earlier this month, the junior Shin was appointed to lead Lotte Financial Corp. during this year's second quarter, just a year after he became the firm's executive member. Lotte officials explained that Shin was promoted to the top position, as former CEO Kobayashi Masamoto retired from management due to advanced age.
It is also the second CEO position that he has been appointed to. Last August, Shin took the helm of Lotte Strategic Investment (LSI) as co-CEO of the firm along with his father and Lotte Group Chairman Shin Dong-bin.
Industry watchers see the younger Shin's rise to the top of the group's key affiliates as his gaining confidence from his father while solidifying his status within the conglomerate, prepping for the upcoming succession of the group's leadership down the road.
Now market attention is on the growth of the two Lotte affiliates under the younger Shin's leadership.
Lotte Financial is a Japan-based affiliate of Lotte Group, holding a 51 percent stake in Lotte Capital. The Lotte conglomerate sold the entire stake it held over Lotte Capital to Lotte Financial Corp. in 2019 when the group restructured itself into a holdings company system. During the process, the group sold significant stakes in Lotte Card and Lotte Insurance, yet it maintained the majority stake in Lotte Capital by handing it off to Lotte Financial Corp.
While Lotte Capital is functioning as a major cash cow of the group, LSI also exerts a key influence over the group. The investment unit of the group holds a 51 percent stake in Lotte Financial Corp. as the largest shareholder, in addition to owning a 10.65 percent stake in Lotte Holdings as the second largest shareholder. LSI is also the de-facto largest shareholder of Hotel Lotte, which serves as an actual link between Lotte conglomerate's Japan and Korean businesses. Considering the significance of the two firms under junior Shin's control, his promotion to those key affiliates of the conglomerate can be seen as the beginning of succession procedures.
Born in 1986, the eldest son of Lotte Chairman Shin graduated from Keio University and earned an MBA from Columbia University. He worked at Nomura Singapore before joining Lotte in 2020.
