이 기사는 2022년 03월 21일 08:08 thebell 에 표출된 기사입니다.

Lotte Group’s retail headquarters, led by new head Kim Sang-hyun, is set to take off to be a control tower overseeing the group’s eight affiliates.

Lotte Group’s retail headquarters consists of eight companies ― Lotte Shopping, Lotte HiMart, Woori Homeshopping, which operates Lotte Homeshopping, Korea Seven, FRL Korea, Lotte GFR, STL and Lotte Members. The headquarters has signed business agreement with these affiliates and set up the foundation to act as a control tower.

Among the affiliates included in the retail headquarters are both subsidiaries of Lotte Shopping and affiliates that are not affiliated with Lotte Shopping. Korea Seven and Lotte Members will be under direction of the retail headquarters. Lotte Corp is the largest shareholder of Korea Seven and Lotte Members, with 80% and 94% stakes, respectively. Lotte Shopping is the largest or major shareholder of other affiliates under the retail headquarters.

The retail headquarters seeks to create synergies between fashion affiliates like FRL Korea, which operates Japanese casual clothing brand Uniqlo here, Lotte GFR and STL and Lotte’s retail affiliates. It also has put Lotte Members under its wing, which manages L.Point, a comprehensive membership service for customers of all Lotte Group subsidiaries.

Under the retail headquarters, there are divisions including management strategy, business operations, human resources innovation, financial innovation, marketing strategy and digital innovation center. Hyun Eun-seok, former chief technology officer (CTO) of eBay Korea was as appointed as the new CTO of Lotte’s retail headquarters.

Affiliates’ finances are expected to be more tightly managed under the headquarters system. Jang Ho-ju, the head of the financial innovation division, will be in charge of establishing affiliates’ financial strategies. Lotte Shopping chief financial officer Choi Young-jun will oversee finance divisions of department store, hypermarket chain, supermarket chain and e-commerce businesses. (Reporting by Hyo-beom Lee)