Nongshim Owner 3rd Generation Shin Sang-yeol Promoted to Executive Director
Entrusted with Future Growth Responsibilities at CJ, Orion, and Others
Lack of Performance and Verification Negatively Affects Company
The food industry is actively advancing next-generation management by consecutively positioning third-generation owners in key roles. Analysts interpret this as a move to strengthen responsible management by promoting family members while preparing for succession. However, there are also considerable concerns about side effects caused by rapid promotions without proper verification processes.
According to the industry on the 27th, Shin Sang-yeol (31), the eldest son of Nongshim Chairman Shin Dong-won and the third-generation owner, was promoted to executive director in the personnel reshuffle on the 25th. This is a rapid promotion just over five years after joining as a staff member in the management planning team in March 2019. Previously, Executive Director Shin was promoted to assistant manager in 2020, then served as head of the management planning team and managing director in charge of purchasing. Since January this year, he has been leading the Future Business Office. Nongshim stated regarding Shin’s promotion, "The promotion to executive director of the Future Business Office, which shapes Nongshim’s vision, was decided to entrust him with pivotal tasks that determine the company’s growth direction and expansion."
In this personnel reshuffle, Shin’s sister, Shin Su-jeong (36), who is responsible for beverage marketing, was also promoted to managing director of the Product Marketing Office. A Nongshim official said, "She was promoted due to achieving sales growth while managing the juice brand 'Welch’s' and will contribute to expanding Nongshim’s global business by strengthening collaboration with global food companies in the Product Marketing Office."
Shin Sang-yeol, Executive Director of Nongshim (left), and Dam Seo-won, Managing Director of Orion. Provided by each company
Industry insiders evaluate the promotions of these siblings as a sign that third-generation management is gaining momentum. Executive Director Shin currently holds a 1.41% stake in the holding company Nongshim Holdings. Managing Director Shin holds 0.34%. Their father, Chairman Shin Dong-won, is the largest shareholder with 42.92%, while their uncle Shin Dong-yoon, chairman of Yulchon Chemical, holds 13.18%, their aunt Shin Yoon-kyung holds 2.16%, and the foundation and internal funds share the remaining shares.
Jeon Byung-woo (30), head of strategic planning at Samyang Round Square, is also a third-generation owner who has stepped fully into company management. He joined earlier than expected after his father, former Samyang Foods Chairman Jeon In-sang, stepped down due to embezzlement allegations. Jeon joined Samyang Foods as head of the overseas business division in 2019, was promoted to director within a year, and then to managing director in October last year.
Samyang Foods, whose largest shareholder is Samyang Round Square, continues to break quarterly records thanks to the soaring popularity of 'Buldak Bokkeum Myun' (Hot Chicken Flavor Ramen). Last year, Samyang Foods recorded its first-ever sales of 1 trillion won and operating profit in the 100 billion won range since its founding. In the first half of this year, overseas sales (621.1 billion won) were three times higher than domestic sales (189 billion won). Jeon holds a 24.2% stake in Samyang Round Square. His mother, Vice Chairman Kim Jung-soo, is the largest shareholder with 32%, and former Chairman Jeon holds 15.9%.
Orion is also accelerating third-generation management. Dam Seo-won (35), eldest son of Chairman Dam Cheol-gon, joined as an inside director of Ligachem Bio, whose shares Orion acquired through its overseas subsidiary earlier this year. Dam joined Orion in July 2021 as senior manager of the Management Support Team, a core department that formulates Orion’s management strategy, and was promoted to managing director in charge of management in December the following year, just 1 year and 5 months later. Dam holds a 1.22% stake in the holding company Orion Holdings and a 1.23% stake in Orion gifted in 2018.
Kim Oh-young (38), executive director and eldest son of Kim Jung-wan, chairman of Maeil Dairies, is also focusing on discovering future growth engines such as overseas market expansion amid limitations in domestic growth. Kim joined Maeil Dairies as an executive (managing director) in charge of production and logistics innovation in 2021 and was promoted to executive director last April after 2 years and 6 months. Industry insiders say Kim’s performance was recognized for reducing logistics costs. According to the audit report, Maeil Dairies’ transportation costs last year were about 49.4 billion won, down approximately 5.8% from about 52.5 billion won the previous year. Kim holds 0.01% stakes each in Maeil Holdings and Maeil Dairies.
Lee Sun-ho (34), eldest son of CJ Group Chairman Lee Jae-hyun and head of CJ CheilJedang’s Food Growth Promotion Office, is also expanding his influence mainly in overseas business. Although there were no role expansions or promotions in two personnel reshuffles this year, he is leading the company’s global food business. The company is also supporting Lee’s domain. Currently, CJ is considering selling its bio business division, which was one of the pillars of the company’s growth. The funds secured from the sale are expected to be used to strengthen competitiveness in the food business. Additionally, CJ CheilJedang recently confirmed the construction of new K-food factories in Hungary and South Dakota, USA. This strategy is seen as aiming to further increase overseas business sales through the new factories in Hungary and the USA. Lee currently holds stakes in CJ Corporation (3.2%), CJ OliveNetworks (15.84%), and CJ E&M (0.68%).
On the other hand, concerns about the early debut of third-generation owners have emerged as cases have appeared where they took full control of management without verification or performance, negatively impacting their companies. Kim Dong-hwan (41), third-generation president of Binggrae’s owner family, was promoted to executive in January 2021 and then to president this year but recently received a fine for assaulting a police officer and stepped down from frontline management. It is reported that Kim is currently refraining from going to work and is staying at home in self-reflection.
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