2023-12-11 09:18:43
Appointment of professional manager following one and a half years of return to management
“Owner responsible management… “Achieved improvement in business structure”
Mart business cancels hiring due to poor performance
▲ Mega Mart Dongrae branch. yunhap news
Mega Mart Vice Chairman Shin Dong-ik, the third son of the late Shin Chun-ho, founder of Nongshim, has stepped down from his position as CEO of Mega Mart, a year and a half following returning to the front line of management. A professional manager will be recruited, and Vice Chairman Shin will only retain his position as an executive director.
Mega Mart, a distribution subsidiary of Nongshim Group, announced on the 11th that it had appointed former Eastern Wells CEO Son Young-gyu as its new CEO following Vice Chairman Shin’s resignation as CEO last November. New CEO Son served as head of sales at Mega Mart and CEO of Phoenix Vending Service. It was reported that Kim Kwon-ju, head of Mega Mart, was appointed as the CEO of Eastern Wells.
Analysis suggests that difficulties in performance were the reason behind the recruitment of professional managers. The situation appears to have worsened to the point that Mega Mart stopped hiring new college graduates this year. On the 15th of last month, Mega Mart stopped the process on the 15th of last month, citing worsening management ahead of the final interview for new college graduate applicants, saying, “As performance in October and November has worsened, we are in a situation where we need to consider restructuring next year.”
Mega Mart recorded a consolidated operating profit of 3 billion won last year, turning from a loss of 800 million won the previous year to a profit. Net profit for the period also recorded 13.5 billion won, turning from a loss of 2.7 billion won to a surplus. However, on a separate mart basis, it recorded a deficit for six consecutive years.
▲ Shin Dong-ik, Vice Chairman of Mega Mart. yunhap news
Vice Chairman Shin is Mega Mart’s largest shareholder with a 56.14% stake. He resigned from his position as CEO in 1999 and returned to the forefront of management in June of last year, 23 years later. After taking office as CEO, he led efforts to improve the company’s structure by changing its business structure, including separate sales of affiliates and mergers and acquisitions.
In particular, in December last year, the room division of Hotel Nongshim, which was in a state of capital erosion, was transferred to Nongshim, and the consignment catering business was transferred to Brown F&B. Also, in February, it merged with Newteranex, a pharmaceutical distribution company.
A Mega Mart official said, “As part of the owner’s responsible management, Vice Chairman Shin directly led the fundamental improvement of the business structure, which had been difficult to achieve under the CEO system,” adding, “Starting next year, selection and concentration of sales through strengthening field management is necessary. “We decided that it was necessary, so we appointed a professional manager with expertise,” he explained.
As an internal director, Vice Chairman Shin plans to actively support the on-site management of professional managers and lead the work and direction of affiliates that he has not been able to closely monitor.
Reporter Kim Hyeon-i
1702288174
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