In the aftermath of its failure to retain the license for an urban duty-free shop, Lotte Group appointed Chang Sun-wook as the new head of Hotel Lotte’s duty-free operations on Monday.

Chang will replace Lee Hong-kyun, who resigned after taking responsibility for having to shut down Lotte Duty Free Shop in Jamsil, southern Seoul. Lee will remain as an advisor.

The country’s fifth-largest conglomerate said Chang, who currently heads Lotte’s advertising agency Daehong Communications, has a long history with the tourism industry and is expected to reinforce the company’s competitiveness.

About 200 people were promoted at the executive level on the day. Among them, Morten Andersen, general manager at Lotte Hotel Moscow, was promoted as senior executive, reflecting the company’s enthusiasm in overseas expansion. Joseph Buntaran, director of Lotte Mart Indonesia, was also promoted as senior executive, taking credit for the retail giant’s success in the Southeast Asian country.

“We have decided to make the minimum change in personnel management while seeking an internal enhancement in efficiency and others,” a Lotte spokesman said.

By Bae Ji-sook (baejisook@heraldcorp.com)