New Lotte Duty Free CEO Kim Dong-ha to address severe market challenges; Steve Timms to depart Oceania role : Moodie Davitt Report

**Kim Dong-ha is a 27-year veteran of the Lotte Group**

SOUTH KOREA. Newly appointed Lotte Duty Free CEO Kim Dong-ha has been charged with addressing the Korean travel retail giant’s structure and financial viability, following heavy losses abroad and big challenges at home.

As reported, Lotte Group announced sweeping structural changes on 28 November as it battles severe headwinds across multiple subsidiaries, including Lotte Duty Free.

The 54-year-old Kim has replaced former Lotte Duty Free CEO Kim Ju Nam. The new incumbent was previously Head of Corporate Culture Team & Business Support Team at Lotte Corporation.

Commenting on widespread Korean media reports of possible store closures and contract exits abroad, Lotte Duty Free told The Moodie Davitt Report today: “Regarding the restructuring of Lotte Duty Free’s overseas operations, no specific plans have been finalised yet.

“We are continuing efforts to improve management efficiency, as we declared in June, but nothing is currently under review.”

The Moodie Davitt Report can confirm that Lotte Travel Retail Oceania’s highly regarded CEO Steve Timms will leave the company at the end of the year as a result of the restructuring. Timms’ stellar career in travel retail has spanned three decades, encompassing senior roles with DFS Group, JR/Duty Free and Lotte Duty Free.

**Steve Timms pictured in May when Brisbane Airport Corporation and Lotte Duty Free celebrated the renewal of their contractual partnership for a further ten years**

About Lotte Duty Free CEO Kim Dong-ha

January 1997: Joined Lotte Wellfood (formerly Lotte Confectionery)
March 2006: Lotte Group Policy Headquarters
March 2015: Head of Strategy & Innovation, Lotte Super
January 2016: Head of Fresh Food Division, Lotte Super
March 2018: Head of Business Support Division, Lotte Super
December 2021: Head of Corporate Culture Team & Business Support Team, Lotte Corporation
December 2024: CEO, Lotte Duty Free

From our earlier report (29 November)….

Click on the image to read *BusinessKorea’s* report, which quotes a Hotel Lotte representative saying, “While the hotel and world business divisions are showing strong performance, the recovery in the duty-free business remains sluggish. Our goal is to achieve stable profits by optimising store operations, reducing fixed costs, and restructuring sales strategies.”

This chart underlines the challenges facing the new CEO. As reported, the country’s big four duty-free retailers all posted heavy Q3 losses as they continue to struggle in the face of soft spending by Chinese visitors, reduced daigou business and punitive airport rents at home and/or abroad. Lotte Duty Free figures exclude the Busan operation, as Lotte Hotel Busan is not a subsidiary of Hotel Lotte. Source: DART (Data Analysis, Retrieval, and Transfer), the Republic’s repository of corporate filings. Click on chart to expand.

**Click on the image to read *The Chosun Daily* report**

The report said: “The reshuffle comes as Lotte Group’s key affiliates grapple with poor performance. Lotte Holdings, Lotte Chemical and Lotte Duty Free recently entered emergency management systems after earnings declined. Analysts interpret the latest shakeup as a full-scale restructuring effort.”

In a separate report the title described the reshuffle as the steepest leadership contraction since the pandemic-era restructuring in 2021.

**Lotte Duty Free CEO Kim Ju Nam has moved on as part of the structural changes**

Fellow Korean business title The Korean Bizwire reported: “Lotte’s duty-free business is focusing on streamlining operations by potentially withdrawing from unprofitable overseas locations in countries like Japan, Vietnam and Australia [likely downtown -Ed].”

More to follow. ✈

From our earlier report (29 November)….

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