Message from CEO
In a few days, the current year will have passed, and a new year will come. We would like to express our gratitude to all our employees who have helped each other get through difficult times.
2020 was an exceptionally difficult year for us. Due to the corona pandemic that will definitely leave a mark in world history, air traffic has been blocked and duty-free industry faced unprecedented difficulties. Yet the end of these hardships still feels out of reach. The pain of the present cannot be compared to the glory that the future will bring us. It has been a difficult year, but now is the time to look forward to a promising tomorrow.
In 2021, we need to examine ourselves to see if we neglected any parts
of compliance or ethical management. It's time to reflect on whether we
have allowed minor irregularities or expediency due to the corona
pandemic to affect us.
We ask that all of you not only have an accurate understanding of
relevant laws and regulations but also have compliance to it and make
an active effort in becoming leading agents in the establishment of a
transparent corporate culture. Thank you for your hard work this year.
Q4 2020Lee Kap, CEO of Lotte Duty Free
The cool air in the morning and evening reminds us autumn is nigh. We encourage all our employees to take care of their health during this change of seasons.
The corona pandemic that has swept across the world is unlikely to end easily. The duty-free industry is facing greater challenges than any other industry given that the number of domestic and foreign travelers has plummeted. However, despite this crisis, we continue to take on new challenges selling duty-free products domestically, opening smart stores, and venturing into live commerce.
Unpredictable crises like the corona pandemic can reoccur at any time. Changes in technology also make it more difficult to predict the future. Now is the time when one needs the ability to quickly change and adapt to stay one step ahead of others.
Organizations that are sensitive to change must acknowledge the differences between themselves and others and build on empathy, consideration, and communication. And if we add common goals, sharing, and fairness in achieving good performance, we can get one step closer to sustainable management.
The first step to such change is compliance. Compliance includes
compliance with laws and transparency in decision-making. It is to build
a community based on trust by communicating with others while
respecting different opinions, being mindful of principles, and
securing the unique distinctive competitiveness of our company
that allows us to stand firm without being shaken
Lotte Duty Free's vision is to be the "No. 1 in Global Travel Retail.
" This cannot be achieved without growing together with our multiple
partners. Let's help Lotte Duty Free stores grow on mutual recognition,
empathy, ethical management, and compliance management.
Q3 2020Lee Kap, CEO of Lotte Duty Free
The world is currently going through a difficult time due to COVID-19. The health of people around the world is compromised, and concerns about a global economic downturn are on the rise.
Lotte Duty Free is expected to lose operating profit, as it was the case during the MERS outbreak. Now, for the sustainable development of Lotte Duty Free, the CEO, executives, and employees must work hard and share this burden.
Even in these circumstances, there is something we must not forget. It is compliance. We should spare no effort to secure internal soundness through compliance and to build customer trust. Our great strength that helped us overcome the difficulties of the MERS and THAAD incidents in the past and reaching this present position is due to the strong trust we have built with stakeholders through steady compliance activities.
In the past, corporate and social practices were focused on short-term financial performance and considered compliance as an unnecessary expense. However, considering the astronomical amount of money and effort required to restore customer trust, we should start thinking of it as an investment rather than a cost.
Our mission is "to contribute to humanity by creating value throughout the customer's life." As the first step toward putting social responsibility into practice, we should focus more on internalizing compliance at the level of our corporate culture.
In May, Lotte Duty Free was selected as a company with an excellent
CP and participated in the CP implementation case presentation by
the Fair Trade Commission. At the event, we shared our vision of
compliance and provided some recommendations to multiple
corporate stakeholders interested in adopting a CP. As the company's
status rises, it is time for all executives and employees to assume
greater responsibility and work hard to establish mature, ethical, and
We would like to, once again, ask all our employees to work
together to make compliance a representative feature of
Lotte Duty Free's corporate culture.
Q2 2020Lee Kap, CEO of Lotte Duty Free
First, I would like to greet everyone a happy new year.
We wish a hopeful new year for all our employees.
The hard work of the previous year has been rewarded. We became the first duty-free business to obtain an "A" grade in the CP rating evaluation. We believe that this was made possible thanks to the efforts of all our employees who have, since the introduction of CP in 2014, worked really hard to establish a fair and ethical management culture.
This year, Lotte Duty Free celebrates its 40th anniversary. Since 1981 when this business started, our sales grew more than 5,000 times in the last 40 years from KRW two billion in the first year to KRW ten trillion last year, making us the number one travel retailer in Korea as well as the second in the global market. This was possible thanks to the passion of our senior and junior members, who have worked together with dignity in the face of difficulties.
However, the circumstances are changing daily, and the growth story of In particular, the demands from various stakeholders for corporate social Q1 2020
the past and the size of the company can no longer guarantee
sustainable growth. Seeing how many companies have lost the trust of
their customers through trivial expediency or complacency, we should
thoroughly re-examine the factors that have contributed to our success
responsibility are increasing. It is time to internalize the concept of global
citizenship so that all employees can exert a positive influence beyond
quantitative growth. As an executive or employee of the no. 1 company
in the duty-free industry, we ask that you not only strictly comply with
laws but also listen to the voices of stakeholders as well as customers
and business partners.
In particular, the demands from various stakeholders for corporate social
Q1 2020Lee Kap, CEO of Lotte Duty Free
After proclaiming to fulfill the fair trade requirements in 2014, Lotte Duty Free has supported many Fair Trade Compliance Program activities to stay competitive in the global market and become the world’s leading retailer.
Many global leading companies already created social values and sustainable business models through fair competition and ethical management practices.
The adoption of the Fair Trade Compliance Program leads Lotte Duty Free to become the world’s second-largest duty free retailer who goes beyond Asia and now competes fairly on the global market.
In addition to the Lotte Duty Free’s code of ethics developed for mutual
growth with partners, social contribution, and integral performance,
our employees who strive to implement the code correctly
are the energy that drives us to this success.
Now, I hope our employees bear in mind the Lotte Group’s mission
of “enriching people’s lives by providing superior products and services
that our customers love and trust.”, focus on fulfilling the fair trade
requirements, and help Lotte Duty Free become the world’s most
successfully and most loved duty free retailer fulfilling its social
responsibility. I also promise you to shape and foster a strong
ethical business culture. Thank you very much.
December, 2018Lee Kap, CEO of Lotte Duty Free
Message from Compliance Director Dear colleagues,
Thanks you all the years we have worked together for supporting
Lotte Duty Free go beyond Korean product, brand, and service
markets and become the top duty free retailer leading Asia.
After adopting the Fair Trade Compliance Program in 2014,
Lotte Duty Free develops a code of ethics and helps employees
implement the code correctly to build and strengthen trust with
customers and partners. These positive forces push
Lotte Duty Free toward a healthy corporate culture based on
fair trade principles.
- [Guide for Lotte Duty Free’s Employees]
- 01 Employees should understand that implementation of fair trade and mutual growth with partners are key factors that give the company a competitive edge stay competitive and try not to engage in any unfair or unjust activities.
- 02 Employees should tighten the compliance monitoring, auditing, and reporting system under the supervision of the Fair Trade Compliance Director.
- 03 Employees should participate in educational programs for improving their understanding on fair trade.
Today, having a transparent and ethical culture is no longer an option but a requirement for survival. Only companies fulfilling their social responsibilities through ethical practices can stay ahead of competition and earn loyalty from customers and stakeholders.
Understanding and participation of all employees including the CEO and the Compliance Director is the key to maintain an ethical business environment. In addition to having a strong ethic, applying the work ethic to daily life is pathway to foster a strong ethical culture. I hope every employee of Lotte Duty Free support the improvement of the company’s ethical climate. The doors of the Compliance Director’s Office are always open. Thank you very much.
December, 2018Kim Junam,Complaince Director