[Economy PICK] Executives' change, asset revaluation...Lotte's "A New Change of Heart."

[Anchor]
Executives' Redevelopment, Asset Revaluation...There was a rumor about Lotte's 'mind-to-mind' Lotte Chemical liquidity crisis, and it must have something to do with it, right?

[Reporter]
Yes, we literally carried out a major manpower reshuffle, replacing 21 CEOs and 36% of the total at a rate.

In the process, senior executives were retired and CEOs born in their 70s were hired to make the president's group younger and slimmer.

Shin Yoo-yeol, the eldest son of Chairman Shin Dong-bin, has been promoted to vice president for three consecutive years and is interested in whether he will play some role in overcoming the crisis.

In order to respond flexibly and quickly to internal and external situations in the future, Lotte has decided to change from the existing regular executive personnel system at the end of the year to the occasional personnel system.

[Anchor]
It's an unconventional large-scale personnel appointment, but the personnel appointments were concentrated in areas with poor performance, right?

[Reporter]
Lotte Group has entered an emergency management system one after another this year as major affiliates such as Lotte Holdings, Lotte Chemical, and Lotte Duty Free have suffered from poor performance.

In particular, the chemical and hotel sectors were cited as the main cause of the deterioration in performance, where a large number of replacements took place.

Of the 13 CEOs, Lotte Chemical has replaced 10 CEO except for three, including Lotte Aluminum, who was appointed last year.

Lotte Chemical, which had earned more than 1 trillion won in operating profit every year in the past, has accumulated losses of more than 660 billion won by the third quarter of this year.

In the hotel Lotte division, the CEO of all three business units, Lotte Duty Free, Lotte Hotel, and Lotte World, have also been replaced.

[Anchor]
Along with a massive presidential personnel reshuffle, assets are also being reorganized to prevent concerns about financial instability, right?

[Reporter]
Yes, Lotte Shopping will reevaluate its assets on its land worth 7.6 trillion won for the first time in 15 years.

It means that the value of assets that were set low in the past will be recalculated,
If the value rises due to the revaluation of
assets, various tax burdens increase, but pushing for a revaluation is the judgment that it will increase financial soundness in accounting.

At the same time, the department store and hotel sectors are reportedly pushing for the sale or consignment of some stores, and the construction sector has also begun to clean up insolvent workplaces.

Lotte has previously decided to provide Lotte World Tower, the symbol of the group, as collateral to the banking sector in order to increase the creditworthiness of Lotte Chemical's corporate bonds.