Hotel Shilla President Lee Boo-jin declared 2025 "a year of real growth and renewed leap forward" through strengthened profitability and competitiveness. The announcement came at the company's first shareholder meeting since returning to profit, with Lee placing profitability-centered management at the forefront of her agenda.
At its 53rd annual general meeting held at the Jangchung headquarters in Seoul on March 19, Hotel Shilla passed all four agenda items as proposed, including financial statement approval, director appointments, audit committee member appointments, and executive compensation limits. Lee was reappointed as inside director, marking her sixth consecutive term.
Addressing last year's performance, Lee said the hotel and leisure division achieved record-high revenue while the travel retail (TR) division focused on improving profitability through operational efficiency. However, she emphasized management's responsibility, acknowledging results "fell short of shareholder expectations."
Hotel Shilla returned to profit last year with revenue of 4.07 trillion won and operating profit of 13.5 billion won, though profitability pressures in the duty-free business remain a challenge.
Based on this assessment, the company is prioritizing profitability-focused restructuring this year. The hotel and leisure division will pursue expansion, capitalizing on rising inbound tourism. With foreign visitor revenue steadily increasing, the company plans to expand overseas properties and strengthen operational capabilities. Hotel Shilla currently operates 21 hotels, including the Shilla Stay brand.
The travel retail business, meanwhile, will focus on structural improvement and efficiency. To recover profitability weakened since COVID-19, the company is restructuring operations and reducing cost burdens. Last year's withdrawal from the low-margin DF1 zone at Incheon International Airport reduced fixed costs, with benefits expected to materialize gradually this year.
"The growth in Korean Wave-driven inbound tourism presents new opportunities for both our hotel and duty-free businesses," Lee said. "We will operate with a focus on long-term profitability improvement and enhancing shareholder value."
Lee's reappointment signals unwavering commitment to this strategy. The board recommended her continuation, stating her leadership is needed "to overcome challenges and achieve sustainable growth in a difficult business environment."
Industry observers note Hotel Shilla has entered a "results verification phase" beyond restructuring. With the strategic direction already set—duty-free efficiency and hotel-centered portfolio realignment—the key question this year is whether these moves translate into actual profitability gains.
After the meeting, Lee briefly told reporters she would "do her best." Chinese fans who came to see her were also spotted at the venue. Lee serves as chair of the Visit Korea Year Committee, expanding her influence across the broader tourism industry.
