On the 20th, Ibu-jin, president of Hotel Shilla, attended the regular shareholders' meeting and said, "By concentrating on the essence of each business and creating attractive products from the customer's perspective while optimizing operational efficiency, we will move beyond crisis management and survival to lay the groundwork for new growth."
Hotel Shilla held its 52nd regular shareholders' meeting on this day at the Jangchung Building in Jung-gu, Seoul. At the meeting, Hotel Shilla introduced electronic voting as part of a shareholder-friendly policy and approved six proposals: ▲ amendment of the articles of incorporation ▲ financial statements for the 52nd term ▲ appointment of directors ▲ appointment of audit committee members ▲ appointment of directors who will serve on the audit committee ▲ limit on director compensation.
Hotel Shilla faces a crisis of loss due to sluggish duty-free sales. Last year alone, the company recorded an operating loss of 69.7 billion won at its duty-free stores. Although sales amounted to 3.2819 trillion won, exceeding 3 billion won from 2023 (2.9337 trillion won), profitability worsened, leading to a shift from operating profit of 22.4 billion won to a loss.
At this shareholders' meeting, Hotel Shilla approved the addition of comprehensive leisure industry, condominium sales and operations, and senior residential and welfare facility installation and operations to its business objectives.
The addition of business objectives is aimed at the senior residency project. The new initiative is an attempt to overcome the crisis of losses due to sluggish duty-free sales. This is considered a new business venture for major hotel operators. According to the Korea Health Industry Development Institute, the domestic silver industry market size is expected to grow from 72 trillion won in 2020 to 168 trillion won by 2030. The industry views Hotel Shilla, which is operating at a loss in the duty-free business, as beginning to lay the foundation for new business ventures.
This year, Ibu-jin attended the shareholders' meeting wearing the 'all black' fashion of the Dolce & Gabbana brand, in contrast to last year's outfit, which featured a white jacket from Alexander McQueen.
After getting out of her car, Ibu-jin only exchanged brief greetings with reporters before entering the meeting hall. After the meeting, she did not provide substantial responses to questions from reporters regarding the measures to overcome the crisis of loss, instead bowing several times before leaving.