Hotel Shilla CEO Lee Boo-jin to Buy 20 Billion Won in Company Stock

Hotel Shilla CEO Lee Boo-jin is taking a significant step to bolster shareholder confidence by initiating a personal purchase of 20 billion won worth of company stock. This move, commencing today and extending over the next month, underscores a strong commitment to enhancing shareholder value. It is particularly noteworthy as this marks Lee Boo-jin's inaugural personal investment in Hotel Shilla shares, sending a clear signal of her belief in the company's future prospects.

This proactive measure follows a positive financial turnaround for Hotel Shilla. The company reported a return to profitability in the first quarter, with sales increasing by 8.4% compared to the same period last year. This resurgence is attributed to strategic improvements in the duty-free sector, which have stabilized profitability, and sustained growth in the hotel division, driven by strong brand competitiveness and increasing inbound tourism.

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The duty-free business as a whole has improved profitability with a decrease in discount rates, which acted as a factor for the first-quarter performance to exceed market expectations, and the hotel business has continued its solid performance trend as inbound demand has steadily increased.

Analysts like Baek Jae-seung from Samsung Securities highlight the improved profitability in the duty-free business due to lower discount rates and the steady performance of the hotel business fueled by inbound demand. The recent withdrawal from the Incheon Airport DF1 business is also expected to further enhance the duty-free sector's profitability in the second quarter. From a South Korean perspective, Lee Boo-jin's investment is seen not just as a financial transaction but as a powerful statement of leadership and confidence in the national tourism industry's recovery and growth potential, especially as the country navigates post-pandemic economic shifts.

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The duty-free business is expected to see further improvement in profitability in the second quarter due to the withdrawal from the Incheon Airport DF1 business.