Nongshim's Third Son Shin Dong-ik Appointed Vice Chairman of Megamart and CEO of Hotel Nongshim

For the purpose of corporate reorganization of Hotel Nongshim
The corporation will be liquidated, but the hotel will continue to operate

[Image source=Yonhap News]

[Asia Economy Reporter Eunmo Koo] Shin Dong-ik, Vice Chairman of Megamart, has been appointed as the CEO of Hotel Nongshim.

According to the distribution industry on the 25th, Hotel Nongshim held a board meeting last month and newly appointed Shin Dong-ik, Vice Chairman of Megamart, as CEO. Vice Chairman Shin is the third son of the late Shin Chun-ho, founder of Nongshim, and returned to the position of CEO of Megamart in July after 23 years.

It is known that Vice Chairman Shin’s appointment as CEO of Hotel Nongshim is essentially aimed at liquidating the Hotel Nongshim corporation, which is in the process of being wound down. Currently, the Hotel Nongshim corporation only holds licenses for alcoholic beverage manufacturing and sales, and businesses involving employment have already been settled. The main business divisions, the room division and the consignment catering division, were sold to Nongshim and Brown F&B respectively, and employees were transferred to those companies. Therefore, even if the corporation is liquidated, the hotel will continue to operate as it does now.

Hotel Nongshim began operations in 1960 by acquiring Dongnae Tourist Hotel and changed its name to "Hotel Nongshim" when it opened a newly constructed building in 2002. It has operated various facilities including the hot spring "Heosimcheong," but due to accumulated losses from COVID-19, it recorded operating losses of 4.4 billion KRW in 2020 and 6.1 billion KRW last year. As of the end of last year, its total capital was in a state of complete capital erosion.

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