Shinsegae Signals Major Changes as Retail Giants Prepare for Year-End Appointments

Shinsegae Group has opened the year-end appointment season with the appointment of Jung Yong-jin as CEO of E-Mart and the largest-ever selection of new executives. As Lotte, CJ, and Hyundai Department Store Group prepare for their regular appointments, the performance of each subsidiary and potential business restructuring have emerged as key factors.
 
According to the retail industry on the 25th, Shinsegae Group appointed Jung Yong-jin as CEO of E-Mart during its regular executive appointments on the 23rd for 2027. Jung, who became CEO of Shinsegae Property in June, will take direct management of E-Mart following a shareholders' meeting. Kim Hong-guk, CEO of Shinsegae Casa, will also serve as CEO of E-Mart and SSG.com. Choi Taek-won, CEO of SSG.com, has been appointed to oversee the management support division of the group's management strategy office, while Park Seung-hak, head of the leisure division at Chosun Hotel & Resort, has been appointed as head of external cooperation. In contrast, the department store division led by Jeong Yu-kyung has retained key executives to prioritize stability. Overall, the group has appointed a record 36 new executives, with the proportion of executives in their 40s reaching an all-time high of 18%.
 
Lotte Group, which is expected to announce appointments next month, will focus on the performance of its new leaders. In March, Lotte Shopping appointed Jeong Hyun-seok as head of the department store division, Cha Woo-cheol as head of the mart and supermarket division, and Lim Jae-cheol as head of finance. Lotte Shopping's consolidated operating profit for the first half of this year was 342.8 billion won, an 81.5% increase compared to the same period last year. The department store division saw profits rise by 59.4% to 310.9 billion won, while the mart division recorded an operating loss of 4 billion won. Operating profits for Lotte Wellfood and Lotte Chilsung Beverage also improved, reaching 100.5 billion won (up 98%) and 103.6 billion won (up 18.6%), respectively. Attention is on Shin Dong-bin, who must balance stability and renewal.
 
For CJ Group, continuity in management and improving profitability are critical factors. Yoon Seok-hwan, who became CEO of CJ CheilJedang in March, is considered likely to remain in his position due to his short tenure, but recovering profitability remains a challenge. CJ CheilJedang's consolidated revenue for the first half of the year was 14.4732 trillion won, a 7.8% increase, while operating profit fell by 17.9% to 495.7 billion won. In contrast, CJ Olive Young continues to grow, with separate sales for the first half of the year reaching 3.3349 trillion won, a 23.7% increase year-on-year. Operating profit is estimated at around 341.6 billion won, with an operating margin of about 10.2%. Lee Sun-jung, CEO of CJ Olive Young, is seen as likely to remain due to this growth.
 
Hyundai Department Store Group is experiencing contrasting fortunes, with strong department store performance and struggles at its mattress subsidiary, Zinus. The department store division's operating profit for the first half was 246 billion won, a 47.7% increase, while Zinus reported an operating loss of 56.8 billion won. Hyundai Department Store's consolidated operating profit also decreased by 10.7% to 178.1 billion won.
 
The restructuring of Hyundai Home Shopping is also expected to influence appointments. Hyundai Home Shopping plans to split its home shopping and investment businesses into separate entities by December 15, following approval at a special shareholders' meeting on November 12. A merger with the newly established investment company and Hyundai GF Holdings is also in the works. There is keen interest in the organizational structure that will lead business restructuring alongside the performance of major subsidiaries.
 
An industry insider noted, “This year’s appointments in the retail sector will focus more on how well each subsidiary has improved its management performance and business competitiveness rather than just a generational shift. Businesses that have improved their performance are likely to maintain management continuity, while those needing to recover profitability may see organizational renewal.”