What: Lotte department store's new CEO Jung Jun-ho is striving to change the company culture. To that end, Jung first introduced his "ABCD" policy, for "Agility," "Being proactive," "Creative" and "Design is everything, everywhere." The new chief asked for quick decision-making and horizontal communication between all employees.

Why it is important: Lotte is well-known for its authoritarian leadership style. Jung wants to establish a work culture and environment where people freely share their ideas, but the existing system is not used to it.

It will take time as the company is struggling to break down its vertically oriented corporate culture. Jung has been throwing out topics for discussion consistently on the company's intranet, but most employees only compliment his opinions, rather than actually sharing theirs.

Lotte Department Store employees are accustomed to following the "check-and-confirm" method, in which all details need to be confirmed with various levels of management, even when making minor decisions. This system has dropped Lotte into second place behind Shinsegae in sales since 2016.

Lotte department store CEO to change company culture