Shin Yu-yeol, the eldest son of Lotte Group Chairman Shin Dong-bin, is set to take on a more prominent role in the company’s domestic management. With his military service exemption effective this year, industry insiders anticipate that he will soon acquire Korean citizenship and actively participate in the company’s operations.
Currently holding executive positions at Lotte’s holding company and its health care subsidiary, Shin was born in London in 1986 and grew up in Tokyo. Since joining Lotte in 2020, he has worked for the company in both Korea and Japan.
Industry sources indicate that Shin is expected to attend the groundbreaking ceremony for a bio plant in Incheon Songdo in June or July alongside his father. This event is seen as a significant test of his managerial abilities. After joining Lotte Holdings in Japan in 2020, he transferred to Lotte Chemical in 2022, receiving several promotions. He was eventually appointed head of Lotte Corp.’s future growth office and head of Lotte Biologics’ global strategy division. In February, he was also appointed as an internal director at Lotte Biologics. Given that the biotech industry is considered a future growth sector for Lotte, his role there is seen as crucial in proving his managerial capabilities.
Since 2020, Shin has frequently attended major company events, leading to expectations that he would follow in his father’s footsteps. His father renounced his Japanese citizenship in 1996 to acquire Korean citizenship without completing military service. Shin’s own military obligations concluded on his birthday, March 30, this year.
Regarding the issue of stake ownership for succession, Shin is expected to resolve this soon. He currently holds little stake in major Lotte companies in both Korea and Japan. However, this could change if Hotel Lotte goes public. As of the end of March, Japan’s Lotte Holdings owns 19.07% of Hotel Lotte, with seven Japanese “L” investment companies holding 46.13%. These companies are fully owned by Lotte Strategic Investment, where Shin serves as the CEO. If Hotel Lotte goes public, he stands to gain substantial profits and increase his influence within the group.
Hotel Lotte holds an 11.10% stake in Lotte Holdings, the apex of Lotte Group’s governance structure, and owns more than 30% of shares in Lotte Engineering & Construction, Lotte Property & Development, Lotte Aluminium, and Lotte Capital. The timing of the IPO remains a key issue. Although Hotel Lotte selected an underwriter for its IPO in 2015, the process has been delayed due to management disputes and poor performance. Despite continuous operating losses from 2020 to 2022, Hotel Lotte turned a profit last year with an operating income of 132.6 billion won.
