Lee Youngjun, chief executive overseeing Lotte’s chemical group, said on Jan. 5 that he would make 2026 a major turning point for future growth. Lee stressed he would make 2026 the year of a “Grand Turning Point”.

Last year, the company shifted its business structure through a global business reorganisation and adjustments to domestic facilities. It is viewed as having carried out reform and improvement consistently despite a difficult business environment.

Lee presented business rationalisation and strengthening financial soundness as the top priorities. The plan is to maintain cash-flow-focused management while completing the ongoing business transition. The company will expand by concentrating resources on promising businesses with strong competitiveness. It will boldly rationalise businesses with weaker competitiveness or those that are hard to differentiate. It plans to upgrade cash management across the entire process, from raw material purchasing to logistics.

The company will also pursue management innovation activities and expand synergies within PSO (Petrochemicals & Specialty Optimization). It will continue innovation activities in each business unit while widening operational synergies within PSO. It is also encouraging collaboration between research institutes and overseas subsidiaries to identify new businesses within the chemical group.

It is also moving to secure a foundation to expand its specialty materials business. It will identify specialty materials businesses linked to its capabilities across areas including low-carbon energy technology, semiconductors, AI, mobility and bio. The goal is to shift to a portfolio in which specialty compounds, semiconductor process materials, green materials, functional copper foil and eco-friendly energy materials account for more than 60 percent.

It will strengthen R&D capabilities while restructuring the chemical group’s mid- to long-term R&D roadmap in sync with future business directions. Lee explained that the source of maintaining an overwhelming competitive edge in the materials business is market dominance based on differentiated technology and products. The company plans to create various collaboration clusters with schools, private companies and global research institutes.

Lee called for maintaining a healthy organisational culture and safe workplaces. He stressed a culture of supporting and encouraging colleagues and employees without being shaken by difficult market conditions. He also asked for monitoring to ensure timely human and material investment for safety, and urged employees to take the initiative in maintaining safe workplaces at their sites.

Lee shared the organisation’s direction and goals, saying, “I ask for careful communication and support so that we can focus on our work with a sense of stability even amid uncertainty.”