[신춘호 별세] Nongshim’s ‘2nd generation era’ opens…the eldest son Shin Dong-won seems to be the chairman after 42 years of joining the company

Input 2021.03.27 11:24

With the death of Chairman Shin Chun-ho of’Ramen King’, the era of Nongshim’second generation management’ led by vice chairman Shin Dong-won (63) has begun in earnest.

Nongshim (004370)On the 27th, Chairman Shin announced that he died at the age of 92 at 3:38 am. The late Chairman Shin Chun-ho founded’Lotte Industry’, the predecessor of Nongshim in 1965. On the 25th, he withdrew from the position of registered director at the regular shareholders’ meeting and left the front line of management after 56 years of founding.

In this year’s stockholders’ meeting, the agenda for re-electing Chairman Shin as the executive director was not proposed.

As the founder, Chairman Shin, passed away, the holding sign Nongshim Holdings (072710)Vice-Chairman Shin, the largest shareholder of the company, is expected to become the next chairman. Vice-Chairman Shin, the eldest son, joined Nongshim in 1979 and was appointed as President and CEO in 1997, and was promoted to Vice-Chairman in 2000 to lead the group.

Vice-Chairman Shin suggested’Overturn Succession’, saying that Nongshim’s strengths, which have been inherited from predecessors, will be preserved with a new management philosophy, but that mistakes will not be reversed and repeated.

As a new business to focus on in the future, health functional foods were selected. He said, “Collagen successfully launched a product last year.”

In 2003, the late Chairman Shin separated Nongshim to establish a holding company, Nongshim Holdings, and proceeded with management succession early on. Nongshim Holdings has 35 affiliates, including domestic and foreign listed companies such as Nongshim and Yulchon Chemical, and non-listed companies.

Nongshim Holdings is expected to take over management rights without heavy burdens on inheritance taxes, as Vice Chairman Shin Dong-won, Nongshim, owns a 42.92% stake. In addition, the second son of Chairman Shin Dong-yoon, Vice Chairman of Yulchon Chemical, 13.18% AMOREPACIFIC (090430)Shin Yoon-gyeong, a three-daughter married to the chairman, owns a 2.16% stake. Shin Dong-ryul, the third generation of Nongshim, has a 1.41% stake. The combined ownership of the owner’s family including Vice Chairman Shin and treasury stocks is 66.6%.

Meanwhile, in the business world, it is predicted that the succession structure of Nongshim, which has the principle of “first-born succession,” will lead to Shin Sang-ryul, 28, the eldest son of Vice Chairman Shin. After graduating from Columbia University in the United States, Sang-Ryeol Shin worked as an intern at a foreign company.

However, as Vice Chairman Shin, who is expected to become the new chairman, took nearly 20 years to reach the front line of management, it is expected that it will take some time for the third generation management to begin in earnest.