Chung Yong-jin's "Renewal" vs. Chung Yoo-kyung's "Stability": Shinsegae Siblings' Personnel Moves (Roundup)

Kim Honggeuk to Lead E-Mart and SSG.com; Management Strategy Office Posts Reshuffled
Shinsegae, With Results Rebounding, Opts for "Stability" and Strengthens Fashion and Beauty Expertise

"Reform and stability." The siblings at Shinsegae Group have taken different approaches to executive appointments. Shinsegae Group Chairman Chung Yongjin is returning directly as CEO of E-Mart and has reshuffled the heads of key affiliates and major posts at the group's control tower. Shinsegae Chairwoman Chung Yookyung has retained key executives while bringing in outside experts for some businesses. Under their independent management structure, the siblings have chosen different personnel strategies to suit the management needs of their respective divisions.

Shinsegae Group Chairman Chung Yongjin, Shinsegae Chairwoman Chung Yookyung

One CEO for E-Mart and SSG.com; Control Tower Also Reshuffled

Shinsegae Group announced its regular executive appointments for 2027 on October 23. E-Mart saw the biggest changes. Chairman Chung Yongjin is returning as CEO after 13 years, while Kim Honggeuk, CEO of Shinsegae Casa, will also serve as CEO of E-Mart and SSG.com. E-Mart CEO Han Chaeyang is stepping down after about three years in the role. The arrangement has Chairman Chung overseeing mid- to long-term strategy and new businesses, while Kim, an expert in merchandising (MD) and sales, works to strengthen the company's competitiveness across its online and offline businesses.

The appointments follow the responsible management policy Chairman Chung announced in June this year. By taking on the role of CEO of E-Mart, following his appointment as head of Shinsegae Property, he will take direct responsibility for the business performance of key affiliates. Chairman Chung is expected to be appointed E-Mart CEO following a shareholders' meeting and other procedures.

The approach to integrated management has also changed. In 2023, CEO Han Chaeyang was put in charge of E-Mart, E-Mart Everyday, and E-Mart 24, pooling the capabilities of the three offline retailers. This time, Kim will lead E-Mart and SSG.com, with a focus on combining E-Mart's product and store competitiveness with SSG.com's online sales network.

The organizations have also been overhauled. E-Mart will establish a new Platform Division under its Strategic Marketing Headquarters. SSG.com will create a new Business Management Headquarters and consolidate its finance and HR organizations into a Support Division, restructuring its business operations and support system.

At the Management Strategy Office, Choi Taekwon, CEO of SSG.com, has been appointed head of Management Support, overseeing HR and audits, while Park Seunghak, head of the Leisure Business Division at Josun Hotels & Resorts, has been appointed head of External Relations, responsible for public relations and government affairs. Executive Vice President Jeon Sangjin will remain in his position. The Planning and Strategy Headquarters of the E-Mart Division will be integrated into the Management Strategy Office, which will also establish a new Planning Division to strengthen its strategic planning and management oversight functions.

From left: Kim Honggeuk, Heo Minhoe, Kim Deokju, and Ki Inju. Photo courtesy of Shinsegae Group.

Shinsegae's Performance Recovers, Bolstering Existing Management Team

The Shinsegae affiliates led by Chairwoman Chung Yookyung prioritized stability. Key executives, including department store CEO Park Juhyeong, will remain in place. Their retention is seen as a show of confidence in the existing management team, following improved results after the heads of the duty-free, fashion, and beauty businesses were replaced last year.

Department store operating profit in the first half of this year came to KRW 249.9 billion, up 39.7% from the same period last year. The duty-free business swung from a KRW 3.9 billion loss in the first half of last year to a KRW 43.9 billion profit this year. Shinsegae International and Shinsegae Casa also returned to profitability over the same period.

The organizational changes focused on enhancing product competitiveness and the expertise of each business. Shinsegae will establish a new Content Development Division under its Product Headquarters. Shinsegae DF will create a Product Headquarters and a Marketing Division to bolster its product assortment and sales capabilities.

Outside talent has been brought in for the fashion, beauty, and household goods businesses. Heo Minhoe, former CEO of CJ Olive Young, will oversee both Shinsegae Casa and the cosmetics business at Shinsegae International. He will also lead the expansion of Casa Mia and JAJU. Shinsegae International is reorganizing its leadership structure into two divisions: fashion and cosmetics. Under this specialized management structure, current CEO Kim Deokju will lead the fashion division, while Heo will head the cosmetics division.

The movement of talent between affiliates also stands out. Kim Honggeuk, who led Shinsegae Casa under Chairwoman Chung Yookyung, has moved to E-Mart, a key affiliate under Chairman Chung Yongjin. Kim, who previously served as head of E-Mart's Product Headquarters, led Shinsegae TV Shopping's return to profitability and improved Shinsegae Casa's profitability. Even as the siblings pursue independent management, key personnel have been assigned across the boundaries between their affiliates.

Further Steps Toward Affiliate Separation: SSG.com Also Splitting Its Businesses

Chairman Chung Yongjin and Chairwoman Chung Yookyung took up their respective posts in 2024, bringing their independent management into full swing. That same year, they made public plans to separate E-Mart and Shinsegae into distinct corporate groups. Last year, they each received shares in the two companies held by Lee Myunghee, the group's chairwoman emeritus. The siblings have strengthened their control, but the task of restructuring cross-shareholdings in affiliates jointly owned by the two divisions remains.

SSG.com is a prominent example. In December this year, it is scheduled to split into a surviving entity focused on grocery shopping and a newly established entity, Shinsegae Mall, focused on fashion and beauty. In August, E-Mart spent KRW 827.5 billion to acquire the stake held by financial investors (FIs), raising its ownership in SSG.com to 65.1%. Shinsegae holds the remaining 34.9%. To complete the affiliate separation, the ownership structure will also need to be further reorganized after the spin-off.

Across the group, 36 executives were promoted to new positions, the highest number on record. The share of executives in their 40s also reached a record high of 18%. The group plans to continue making appointments on an ad hoc basis after the regular reshuffle, based on ability and performance. Shinsegae Group said, "We will continue to make merit-based appointments, evaluating people solely on their 'ability' and 'competence.'"

This content was produced with the assistance of AI translation services.