This year, distributors have uniformly presented plans for "expanding new businesses" ahead of the regular shareholders' meeting. According to the Financial Supervisory Service on the 11th, companies such as Hotel Shilla, Nongshim, LOTTE HIMART, and Dongwon F&B have increased the number of corporations that are amending their articles of incorporation to add business purposes compared to last year. AMOREPACIFIC Group and FILA Holdings will change their names to align with global business expansion. This appears to be an effort to secure future growth engines through new businesses in an era of constant crisis.
Hotel Shilla, led by President Lee Bu-jin, plans to add condominium sales and operations, as well as the establishment and operation of elderly housing and welfare facilities, and comprehensive leisure businesses to its business purposes at the regular shareholders' meeting on the 20th. Amid poor performance in the duty-free business, which accounts for most of its revenue, this seems to be a strategy to secure growth through the senior business. A Hotel Shilla official noted, "It is a proactive expansion of business purposes in the articles of incorporation to secure various business opportunities in the future."
LOTTE HIMART will also add the manufacturing of electronic, electrical, and communication machinery and related devices, direct selling, and associated services to its business purposes at the regular shareholders' meeting on the same day. This aims to enhance the competitiveness of assembled PCs and expand customer lifetime care-based consulting and purchase support in line with the aging society.
Nongshim plans to include "smart farm operation" in its business purposes at the regular shareholders' meeting on the same day. Having entered the smart farming business through the in-house venture "Doctor Farm" in 2018, Nongshim exported a container-type smart farm to Oman in 2022. This amendment to the articles of incorporation is expected to accelerate its smart farming business.
Dongwon F&B presented a plan to add 17 new businesses to its business purposes at the shareholders' meeting scheduled for the 26th. This will include internet service-related businesses such as e-commerce and telecommunications brokerage, advertising agency, internet content development, as well as food processing, clothing manufacturing sales, household essential sales, and the sale and distribution of pet-related supplies.
Hyundai LIVART, which will hold its shareholders' meeting on the same day, plans to add interior design and exhibition, convention, event, and event agency to its business purposes. J.ESTINA, which engages in the jewelry business, will add the development, manufacturing, sale, and import-export of health functional foods and dietary supplements, as well as general food manufacturing, sale, and import-export to its business purposes at its shareholders' meeting on the 28th.
Some are changing their names to expand their business. Shinsegae Central City, a subsidiary of Shinsegae, led by Chairman Jeong Yu-kyung, has proposed changing its name from the existing "Shinsegae Central City" to "Shinsegae Central" at the regular shareholders' meeting on the 20th. Until now, the company has operated Central City, which includes the Shinsegae Department Store in Gangnam and the JW Marriott Hotel, as a real estate rental and management subsidiary of Shinsegae, but aims to grow into a comprehensive real estate development company in the future.
In this regard, Shinsegae explained in the notice of the shareholders' meeting sent to shareholders of Shinsegae Central City, "We plan to lead high value-added real estate businesses such as residential, office, hotel, and retail using key properties within the group and to transform into a core affiliated company," and added, "We will remove the term 'city,' which has a limited meaning like that of a large city such as Seoul, from our existing name and leap forward as a comprehensive real estate development company."
AMOREPACIFIC Group will change its name to AMOREPACIFIC Holdings at the shareholders' meeting on the 25th. The company explained, "We are changing our name to clarify our role as a holding company and to promote smooth communication with stakeholders." The following day, OTOKI will present a proposal to change its English name from "OTTOGI CORPORATION" to "OTOKI CORPORATION" during its shareholders' meeting. This change appears to be aimed at overseas business.
FILA Holdings plans to change its name to Misto Holdings Corporation at the shareholders' meeting on the 31st. This is derived from Misto Brand Holdings, a global brand business corporation established in Hong Kong in 2023, and is interpreted as a commitment to operate various brand businesses. The company operates the sports brand FILA, acquired in 2007, and the golf equipment company Acushnet, acquired in 2011.
Castelbajac, which is in the golf apparel business, plans to change its name to Hyeongji Global at its regular shareholders' meeting on the 13th and add sports management to its business purposes.
The return of family members to the board of directors is also noteworthy. Lotte Shopping plans to reinstate Chairman Shin Dong-bin, who stepped down from his directorship in March 2020, as an internal director after five years. Currently, Chairman Shin holds internal director positions in four companies: LOTTE Corporation, LOTTE Chemical, LOTTE Wellfood, and LOTTE Chilsung Beverage. He plans to forgo re-election for his internal director position at LOTTE Chilsung Beverage. KLEANNARA plans to reappoint Chairman Choi Byung-min, the second-generation owner, as an internal director after five years since March 2020.
A retailer industry official noted, "Last year's shareholders' meeting showed a passive approach toward new businesses, whereas this year there is an increase in corporations adding business purposes through changes to their articles of incorporation." They added, "Given that the retail industry's recession has become a constant state, this reflects companies' concerns about securing future food sources."