[News Space=Reporter seungwon lee] As Imperial Palace Seoul Hotel (640 Eonju-ro, Gangnam-gu, Seoul) has changed its name to 'Grand Mercure Imperial Palace Seoul Gangnam' and reopened, attention is focused on its parent company.

 

The predecessor of the Imperial Palace Hotel was 'Hotel Amiga', which opened in September 1989. It was renamed the Imperial Palace Hotel in 2005. It was reborn through a large-scale expansion project with an investment of 100 billion won over three years starting in 2002.

 

 

1. Taeseung21 Co., Ltd.… Cha Du-ri’s ex-wife is serving as an auditor at Cha Du-ri’s company

 

The operator of this hotel is currently Taeseung 21 Co., Ltd. It is a new corporation established in December 1999 by splitting the hotel business division of Iljin Industry Co., Ltd. Shin Chul-ho, the chairman of Imperial Palace Hotel, is the second son among three sons and five daughters of the Iljin Industry family, famous for being rich in Gangnam land.

 

Iljin Industry was split into Taesung 21 (hotel division) and Amoje Industry, and the three sons of the late Shin Geun-il, chairman of Iljin Industry, took charge of each. Iljin Industry is managed by the eldest son, President Shin Jang-ho, Taesung 21 by the second son, Chairman Shin Cheol-ho, and Amoje Industry by the third son, Chairman Shin Hee-ho.

 

Also, Shin Chul-ho, the chairman of Iljin Industries, is the father-in-law of soccer player Cha Du-ri. Shin Hye-sung, the eldest daughter of Chairman Shin Chul-ho, married Cha Du-ri in 2008 and became famous as the in-law of coach Cha Bum-geun, but news of their divorce was reported in 2013, five years after their marriage.

 

However, it is known that Cha Du-ri's divorce mediation application did not reach an agreement, and after losing two lawsuits, the divorce proceedings have been ongoing for 11 years. The couple has one son and one daughter.  

According to the Financial Supervisory Service's electronic disclosure system, as of December 31, 2023, the corporation operating the 'Imperial Palace Hotel' is 'Tae Seung 21 Co., Ltd.', and the major shareholder, Shin Jae-beom, and special related parties hold a 100% stake.

 

The CEO of Taesung 21 changed from Lee Cheol-hee last year to Yoo Jun-jae, who took office in October 2023. The internal directors are Shin Cheol-ho and Shin Jae-beom, and Shin Hye-seong, the eldest daughter of Chairman Shin Cheol-ho, is currently serving as an auditor.

 

In the hotel industry, the largest shareholder of Taesung 21 is known not as Chairman Shin Chul-ho but as Director Shin Jae-beom. Director Shin Jae-beom is the CEO of Jooyoung 21, which operates the Imperial Palace Boutique Hotel (221 Itaewon-ro, Yongsan-gu, Seoul) located in Itaewon.

 

Information about the actual hotel manager, CEO Shin Jae-beom, is shrouded in mystery.  

 

 

2. Operating loss continued for the past 4 years… Cumulative operating loss of 58.7 billion won, net loss for the period of 116.3 billion won

 

According to the Financial Supervisory Service’s electronic disclosure system of Taesung 21, the operator of Imperial Palace Hotel, it had a surplus in operating profit before COVID-19. In 2019, just before the COVID-19 outbreak, it had sales of 42.5 billion won and an operating profit of 400 million won. However, it was hit hard by COVID-19.

 

From 2020 to 2023, there were four years of operating losses and net losses. In 2023, sales were only 2.3 billion won, operating losses amounted to 31.8 billion won, and net losses amounted to 65.9 billion won. 

 

The accumulated operating profit deficit (operating loss) for four years alone amounts to 58.7 billion won, and the net loss for the period also amounts to 116.3 billion won.

 

Sales also continued to decline from 2020 to 2023. It fell from 17.9 billion won in 2020 to 14.4 billion won in 2021, 2.5 billion won in 2022, and 2.3 billion won in 2023.

 

The operating loss also widened from a deficit of 8.4 billion won in 2020 to 9.4 billion won in 2021, 9.3 billion won in 2022, and 31.6 billion won last year. The net loss also increased sharply from a deficit of 9.9 billion won in 2020 to a loss of 14.6 billion won, a loss of 25.9 billion won, and a net loss of 65.9 billion won in 2023. 

 

 

 

3. Taeseung 21 Co., Ltd. is a Japanese company.

 

In 2007, Taesung 21st Co., Ltd. acquired Taesung 21st (Japan), a Japanese corporation, as a subsidiary to operate the IP Hotel (Imperial Palace Hotel) in Fukuoka, Japan. In 2010, it also opened the 'IP Boutique Hotel' in Hannam-dong, Yongsan-gu.

 

Taesung 21, the operator of the Imperial Palace Hotel, is listed as a Japanese company and its headquarters is also located in Japan.

 

As of December 31, 2023, the other affiliated companies of the consolidated company are known to include IP Global Co., Ltd., Iljin Industry Co., Ltd., Amoje Co., Ltd., Demeter Co., Ltd., Jooyoung 21 Co., Ltd., and Youngbin Co., Ltd.

 

 

 

Taesung 21's sales in 2023 were only 2.3 billion won, but the cost of sales reached 3.5 billion won, and the total sales loss alone was 1.1 billion won. 

 

Among the expenditures, sales and management expenses amounted to 30.7 billion won, and separate from the 2 billion won salary, the commissions paid amounted to a whopping 23.8 billion won. These commissions included 17.9 billion won in long-term loans from Demeter Co., Ltd. and IP Global Co., Ltd.

 

As of December 31, 2023, Taesung 21 has one ongoing lawsuit as a defendant.

 

The 'claim for transfer of ownership registration and attachment of claims' is in progress, and it was revealed that 1.8 billion won out of the 3.96 billion won claimed by the plaintiff is being recorded as unpaid amounts and payment commissions (selling and management expenses).

 

4. The ‘entangled’ management structure of Taeseung 21 Co., Ltd., Jooyoung 21 Co., Ltd., and Demeter Co., Ltd.

 

Jooyoung21 Co., Ltd. was established on September 13, 1977 to engage in the tourist hotel business and owns the Imperial Palace Boutique Hotel in Hannam-dong, Yongsan-gu, Seoul. As of December 31, 2023, Demeter Co., Ltd. holds a 100% stake.

 

In 2023, the company generated KRW 267 million in interest income, etc. from related parties such as Youngbin, KRW 261 million in payment fees, KRW 30 million in loans, and KRW 400 million in recoveries from fund lending transactions. In addition, related receivables amount to KRW 5.435 billion and liabilities amount to KRW 141 million. As of 2023, it is providing a payment guarantee (guarantee amount: JPY 700 million) and land and buildings (collateral amount: KRW 4.56 billion) as collateral for the borrowings of Youngbin Co., Ltd. and Taeseung 21 Co., Ltd., respectively.

 

Jooyoung 21's 2023 sales were 5.9 billion won, operating profit was 690 million won, and net profit was 5.4 billion won. 2.6 billion won was paid as selling and administrative expenses.

 

Demeter Co., Ltd. (6th floor, 22, Hakdong-ro 42-gil, Gangnam-gu, Seoul) was established on August 6, 2012 and operates a hotel operation, management consulting, and parking lot business in Nonhyeon-dong, Gangnam-gu, Seoul. As of December 31, 2023, the company's capital is 220 million won, and major shareholder Shin Cheol-ho and special affiliates hold 100% of the shares.

 

Sales in 2023 were 11.5 billion won, operating profit was 1.9 billion won, and net loss for the period was 700 million won.

 

When we asked Imperial Palace Hotel about the reason for maintaining a Japanese company while operating a hotel in Korea, the background of the deficit for four years, the relationship between Taesung 21, Jooyoung 21, and Demeter, and the 23.8 billion won in commissions paid to special related parties of Taesung 21, they responded, "We cannot respond."