Lotte Vice Chairman Shin Dong-bin Responsibility Expands
- Speculation mounting on his succession in the group

Shin Dong-bin, the vice chairman of Lotte Group and second son of Lotte Group founder and chairman Shin Kyuk-ho, has virtually designed his position in the conglomerate, and was recently appointed as chief of a newly opened policy division of Lotte Hotel.

Lotte Group announced on Oct. 4 the establishment of the group's policy division under the roof of Lotte Hotel, one of the group's subsidiaries, and appointment of the junior Shin as the head of the division. Kim Byung-il, president of Lotte Hotel, was concurrently installed as the deputy chief of the division, while Shin Dong-in, president of Lotte Shopping Co., was also given the job for international business. Lotte Shopping president Shin will be in charge of the group's entry into overseas markets, including Russia and China.

Industry observers share the view that the establishment of the hotel's policy division and appointment of the junior Shin as chief of the new division, could be construed as an acceleration of a move to hand over management of the group from the founder to the junior Shin.

The hotel's policy division, headed by the junior Shin, is a virtual equivalent of other conglomerates' restructuring offices, and Lotte Hotel has served as a connector of almost all of the group's subsidiaries, including Lotte Construction, Honam Petrochemical Corp. and Lotte Shopping.

Though he holds the title of the group's vice chairman, the junior Shin has been not assigned to the group's management so far, but from now, he will participate in the overall duties of the group with the establishment of the hotel's policy division.

A Lotte official said the new policy division is officially in charge of overseeing overall management issues of the group and subsidiaries and the junior Shin, groomed to be one of the candidates to succeed the group chairman and founder, is expected to be involved in the overall duties related to the group's management.

The junior Shin started his management career in 1990 when he was appointed as managing director of Honam Petrochemical Corp. In 1997, he was promoted to vice chairman of the corporation.

During March, Shin began to take management jobs in the manufacturing sector as joint representative director of Lotte Confectionary and Honam Petrochemical Corp.

Recently, he was actively engaged in such outside activities as his participation in a conglomerate leaders' event held in Cheong Wa Dae. He was a member of a delegation of businessmen, who accompanied President Roh Moo-hyun during his state visit to Russia.

As part of a series of exits of elder-generation managers that have began since 2002, as recently as last late September, Lim Seung-nam, former president of Lotte Construction, who was a member of the first class in the publicly contested recruitment of Japan Lotte, resigned from his post.

An industry observer said the series of exits of elder-generation mangers might signal an acceleration of a generation change.

Vice Chairman Shin Dong-bin reportedly said following the latest appointment of the hotel's policy division that the group intends to make its heavy chemical business into a flagship industrial sector on top of its business of distribution.

According to the report, Shin said that he wants to invest in the petrochemical sector either by buying related businesses or through mergers and acquisitions. It said the junior Shin confirmed his plans to build a high-rise building in the second Lotte World in Jamsil, southeastern Seoul.

"Honam Petrochemical Corp. and LG Chem Co. jointly acquired Hyundai Petrochemical Co., but this is not enough for us to secure market influence", the junior Shin said, adding that the group would find any petrochemical business on sale or available for a takeover.   nw