Hotel Shilla will have get it first major overhaul in 34 years. The hotel in Jangchung-dong, Seoul will be closed for remodeling from January next year to July.

"It's been more than 30 years since the hotel opened, so there's a growing need for remodeling because ceilings are low and rooms are narrow," a staffer said.

During the remodeling period, staff will be given leave on 70 percent of their salary. Hotel president Lee Boo-jin made the decision to let the staff take time for self-improvement.

A few years ago Hotel Shilla also closed its Korean restaurant Seorabol, which opened in 1979, due to low profitability.