Will the Half-Century Grudge Between Lotte and Nongshim Ease as They Transition to Second-Generation Management?

Chairmen Shin Kyuk-ho and Shin Chun-ho Never Reconciled Before Death
Chairman Shin Chun-ho's Funeral Altar Adorned with Floral Tribute from Nephew Shin Dong-bin... The Entire Lotte Family Gathers

[Asia Economy Reporter Jo In-kyung] Following the passing of Shin Kyuk-ho, Honorary Chairman of Lotte, last year, Shin Chun-ho, Chairman of Nongshim, also passed away, marking the official start of second-generation management for both groups. The business community is keenly watching whether the longstanding feud between the Lotte and Nongshim families, which has lasted over half a century since the fathers' generation, can be reconciled in the generation of their sons, who are cousins.

According to the business community on the 28th, the conflict between the two companies dates back 56 years to 1965. Chairman Shin Chun-ho experienced a conflict with his older brother, Shin Kyuk-ho, Chairman of Lotte Group, over the promotion of the ramen business in 1965, leading him to establish the ramen company Lotte Industrial and become independent. When Shin Kyuk-ho prohibited the use of the Lotte name, Shin Chun-ho changed the company name to Nongshim in 1978 and severed ties with Lotte.

Since then, the two brothers cut off contact and did not participate in family gatherings, maintaining their feud for over half a century. They even held ancestral rites separately and never reconciled during their lifetimes. When Shin Kyuk-ho passed away in January last year, public attention focused on whether Shin Chun-ho would pay his respects, but he ultimately did not appear at his brother's funeral. Instead, his eldest son, Shin Dong-won, Vice Chairman of Nongshim, attended the condolence.

Chairman Shin Chun-ho passed away on the 27th, but Shin Dong-bin, Chairman of Lotte and nephew of Shin Chun-ho, is currently staying in Japan. Considering the two-week self-quarantine period upon entry, it is realistically difficult for him to attend the funeral.

However, both Chairman Shin Dong-bin and Shin Dong-joo, Chairman of SDJ Corporation, sent floral wreaths to the funeral hall to express their condolences. In particular, Shin Dong-bin’s wreath was placed closest to the deceased’s portrait, drawing attention. A wreath from 'All Lotte Employees' also arrived and was placed on one side outside the funeral hall. Although not a member of the owner family, Hwang Gak-gyu, former Vice Chairman of Lotte Holdings and once the 'second-in-command' of Lotte Group, visited the funeral hall the day before to pay tribute.

Members of the extended Lotte family, including the deceased’s younger brother Shin Jun-ho, Chairman of Purmil, and nephew Choi Eun-young, Chairman of Yusoo Holdings, have also been visiting the funeral hall one after another.

Meanwhile, Lotte Group is currently led by Shin Dong-bin, who won the 'Prince’s Rebellion' in 2015. At that time, Shin Dong-bin secured management rights over the group after competing with his older brother, Shin Dong-joo, and took control of both Korean and Japanese management rights.

Unlike Lotte, Nongshim had already designated the eldest son, Shin Dong-won, as the successor early on. He became CEO of Nongshim in 1997 and was promoted to Vice Chairman in 2000, effectively managing Nongshim since then. Shin Dong-won is the largest shareholder of Nongshim Holdings, the largest shareholder of Nongshim. As of the end of September last year, his stake in Nongshim Holdings was 42.92%.

Shin Chun-ho’s other two sons, Dong-yoon and Dong-ik, are leading their respective companies as Vice Chairman of Yulchon Chemical and Vice Chairman of Mega Mart.

This content was produced with the assistance of AI translation services.