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This article was published on March 27, 2021 at 12:41 p.m. The Bell payment pageThis is the article expressed in the article.

Nongshim Group Chairman Shin Chun-ho, who suffered sibling disputes, prepared for the succession early. It was because of the ruling that it was necessary to organize the trafficking in advance so that President Shin’s children would not experience conflicts over issues such as equity or management rights. The succession took place in 2003 with the launch of the holding company. The administration is also expected to stabilize without much noise, as the three-brother system has been in place for several years.

The late President Shin married Ms. Nak-yang Kim in 1954 and had three sons and two daughters. Except for the youngest daughter, Shin Yun-gyeong, who is married to the president of the Amorepacific Group, Seo Gyeong-bae, everyone is involved in the management. Nongshim is Vice President Shin Hyun-ju, Nongshim Holdings and Nongshim Co., Ltd. is Vice President Shin Dong-won, Yulchon Chemical is Vice President Shin Dong-yoon, and Mega Mart is Vice President Shin Dong-ik.

President Shin prepared for the succession of the Nongshim Group more than 20 years ago. When Vice President Shin Dong-won was appointed to the position of CEO of Nongshim Co., Ltd., a major subsidiary, he considered the governance structure with the eldest son as the central point. Vice President Shin Dong-won has been appointed CEO of Nongshim Co., Ltd. for a further 20 years since before 1999.

Vice President Shin Dong-yoon also served as representative director of Yulchon Chemical at the same time, while the group and Nongshim Co., Ltd. were designated as Shin Dong-won and Yulchon Chemical as Shin Dong-yoon. Since the two are twin brothers, it seems they had no choice but to make a table around them.

The starting point of the shareholding succession was when Nongshim Holdings was split in 2003. At that time, Nongshim Co., Ltd. split to establish Nongshim Holdings, a holding company. At the time of establishment, the total ownership ratio was 13.87%. Chairman Shin owns 9.96% and is the largest shareholder, followed by Vice Chairman Dongwon Shin 2.78%, his wife Nakyang Kim 0.57% and second son Dongyoon Shin, Vice Chairman of Yulchon Chemical 0.36%. Other affiliates, Yulchon Chemical, owned 13.16%, the Nongshim Labor Welfare Fund 15.26% and the Yulchon Foundation 5.09%.

As Yulchon Chemical, Nongshim Labor Welfare Fund, and Yulchon Foundation sold the shares, and the second generation of owners bought the shares, the shares were organized around the second generation. In this process, the actions of the second son, Vice President Shin Dong-yoon, once surpassed President Shin and Vice President Shin Dong-won, but the traffic cleared immediately.

As soon as the holding company was launched, Nongshim Holdings carried out a third-party capital increase and Vice Chairman Shin Dong-won took a 36.18% stake to become the largest shareholder. As of 18 years later, Vice President Shin Dong-won owns 42.92%, which is an overwhelming stake. Compared with Vice President Shin Dong-yoon 13.18% and Shin Yoon-kyung 2.16%, there is a significant difference.

Vice President Shin Dong-won has been working as an executive while serving as a registered executive since the inauguration of the holding company, Nongshim Holdings. In 2010, he became the CEO of Nongshim Holdings and in 2011 he served as president. Until recently, the Chairman of Nongshim Holdings had “two” Chairman Shin and Vice Chairman Dongwon Shin.

In fact, Vice President Shin Dong-won is interpreted to have been active as the group’s general manager for 10 years. Based on the experience of taking control of the business in the internal organization for a long period of time, it secured not only shares but also management rights and solidified its position as successor.

The conflict between Vice President Shin Dong-won and his brothers has never been visualized. While Vice President Shin Dong-yoon and Vice President Shin Hyun-joo hold key positions in subsidiaries, they serve as members of the board of directors of Nongshim Holdings and support Vice President Shin Dong-won.

The background to the early pursuit of Chairman Shin’s managerial succession is said to be that he was aware of a dispute with the late older brother Shin Gyeok-ho, Honorary Chairman of Lotte Group. When Lotte Industries, the birthplace of Nongshim Group, was founded, the two brothers, Honorary President Gyuk-ho Shin and President Chun-Ho Shin, entered into a strong confrontation with the ramen business.

Despite his brother’s ramen business, President Shin founded Lotte Industries in 1965, and in 1966, with a capital of 5 million won, the Daebang factory was completed and began producing ramen in earnest. Later, when the conflict with Honorary President Shin escalated, he went to the litigation workshop. In 1978, the company changed the company name to ‘Nong Shim’ and declared the second start-up in response to the Lotte Group’s urgency to remove the Lotte name.

The business community hopes that there will be no major changes to the current management system even after the death of President Shin, as the Nongshim Group had already achieved its ownership and management a long time ago. It is an observation that the current order will not change significantly as we have been doing business together for a long time as “together and separately”.

Furthermore, it is known from inside and outside Nongshim that there will be little possibility of noise regarding management rights, as it is known that his father has been constantly hearing about the conflict between the Lotte Group siblings, Shin Dong-ju and Shin Dong-bin.

An official from the Nongshim Group said, “The structure for management succession has been clear since the inception of the holding company,” and said, “The current system of the board of directors organized around Vice President Shin Dong-won will continue to be stable.” .