Shinsegae Chairman Jung Yong-jin to Lead E-Mart and Shinsegae Property

Jung Yong-jin, Chairman of Shinsegae Group, will take on leadership roles at two key subsidiaries: E-Mart and Shinsegae Property. This move is seen as a step to strengthen accountability in management following recent controversies surrounding Starbucks Korea's marketing practices.

On June 8, Shinsegae Group announced that Jung has been appointed as the co-CEO of Shinsegae Property. The company stated that this decision represents a commitment to full accountability in management by participating as a legally registered executive in the board of directors that represents the current and future of the group.

Shinsegae Property plans to hold a board meeting soon to recommend Jung as a registered director. Following this, the proposal will be presented at a shareholders' meeting, and another board meeting will be held to officially appoint Jung as co-CEO. For E-Mart, Jung is expected to be named co-CEO after the regular executive appointments this year, with final approval at next year's shareholders' meeting.

Jung stated, "I take the market's demand for clear accountability in management very seriously. As CEO, I will be evaluated by the board and shareholders moving forward."

This decision aligns with Jung's announced plans for group reform following the recent 'Tank Day' marketing controversy at Starbucks Korea. E-Mart is the largest shareholder of Starbucks Korea, and the CEO of E-Mart is responsible for the board composition and operations of Starbucks Korea.

With Jung's appointments as CEO of E-Mart and Shinsegae Property, the number of subsidiaries represented on the board will increase to three. Jung was previously appointed as the inaugural chairman of the board for AG Global Holdings, a joint venture established by Shinsegae Group and Alibaba International last year.

Shinsegae Property is particularly significant as it is linked to the group's future growth initiatives. In March, the company signed a partnership agreement with the U.S.-based Reflection AI to oversee the establishment of an artificial intelligence (AI) data center, including site acquisition. This indicates that Jung will directly oversee both the core retail business centered around E-Mart and future projects like the AI data center.

Alongside Jung, Lee Hyung-cheon, former head of the development division, has been appointed as co-CEO to lead Shinsegae Property. Lee has previously spearheaded projects such as the construction of Starfield Cheongna. A Shinsegae Group official stated, "Lee will focus on current issues and organizational management to improve profitability, while Jung will oversee the establishment of long-term vision and enhancement of corporate value, creating synergy in management."

Starbucks Korea will also see a change in leadership. The company has appointed Shin Dong-woo, head of support at Shinsegae Property, as the new CEO of Starbucks Korea. Shin previously served as the head of strategic planning at Starbucks Korea and has recently managed strategy formulation and financial oversight as head of support at Shinsegae Property.

A company official noted, "Shin will concentrate on strengthening the operational framework and internal controls at Starbucks Korea, making the development of a reform plan for restoring trust a top priority."

Additionally, in March, Jung visited the construction site of Starfield Cheongna, which is being developed by Shinsegae Property, to inspect the progress and layout of key facilities. At that time, he emphasized the need for meticulous oversight during construction, urging, "Please ensure there are no gaps in the work and deliver the highest quality in the world."