SEOUL, Oct. 30 (AJP) — South Korea's Shinsegae Group announced Wednesday it will split into two separate groups, each centered on Shinsegae Department Store and the E-mart discount store.
The retail conglomerate promoted Chung Yoo-kyung, president of the department store, to chairwoman to head the new Shinsegae-led group.
Her brother Chung Yong-jin, chairman of Shinsegae Group, will oversee operations centered on E-mart, the group said.
The split completes a succession plan initiated in 2011 by their mother Lee Myung-hee, now the group's general chairwoman, when she made Shinsegae and E-mart separate companies headed by her two children.
Lee maintains 10 percent ownership in both entities. Both siblings hold 18.56 percent stakes in their respective companies, following two decades of gradual share transfers and exchanges to establish the divided structure.
E-mart's portfolio includes SSG.com, Gmarket, Starbucks Korea operator SCK Company and Shinsegae Property (Starfield).
Shinsegae controls the department store business, duty-free operations, and fashion retail through subsidiaries including Shinsegae International and Shinsegae Casa.