Shinsegae Group is expected to conduct its regular executive reshuffle around the Chuseok holiday, with a focus on performance-based management adjustments. Jung Yong-jin is anticipated to be appointed as the CEO of E-Mart, while the selection of a new head for the management strategy division and the spin-off of SSG.com are also under scrutiny, raising questions about potential changes in the independent management structure led by Jung Yong-jin and Jung Yoo-kyung.
According to the retail industry on September 22, Shinsegae has moved the timing of its regular appointments from the end of the year to September-October in recent years. In 2023, the announcement was made on September 20, while in 2024, it is scheduled for October 30, and last year, it was on September 26. Last year, the company strengthened its performance-oriented approach by replacing many key executives at major subsidiaries, including SSG.com, Shinsegae International, Shinsegae Food, Shinsegae DF, and Chosun Hotel & Resort.
This year, there is speculation that the appointments may occur around the Chuseok holiday. A Shinsegae official stated, "The timing and direction of the appointments have not yet been determined." Given that major subsidiary heads were replaced last year, this year's reshuffle is expected to focus more on evaluating the performance of the existing management rather than a significant overhaul.
One key point of interest in this year's appointments is Jung Yong-jin's expansion of direct management. In June, he took on the roles of CEO for both E-Mart and Shinsegae Property. At Shinsegae Property, he will work alongside co-CEO Lee Hyung-cheon, while at E-Mart, he is expected to be appointed as CEO in this reshuffle and will become a registered director after the shareholders' meeting next year. This raises questions about how the roles of existing executives, including Han Chae-yang, the current CEO of E-Mart, will be adjusted.
The restructuring of the group's management strategy division is also a variable. In April, Shinsegae Group released Im Young-rok from his dual role as head of the management strategy division but has not appointed a successor. The group has stated that Jung Yong-jin will oversee the management strategy division until a new head is appointed. If a new head is selected in this reshuffle, it could lead to changes in the role and authority of the group's control tower.
Simultaneously, a restructuring of the business structure is underway. SSG.com is set to spin off into two entities on December 1, with one focusing on grocery operations and the other on fashion, beauty, and lifestyle under the name Shinsegae Mall. Immediately after the split, the existing shareholding structure will remain at 65.1% for E-Mart and 34.9% for Shinsegae. Industry analysts suggest that this division may facilitate easier share adjustments for future separation of the subsidiaries, although the specific method and timing for such separation have not yet been determined.
Performance will also be a key criterion in this reshuffle. E-Mart reported a separate operating profit of 171.9 billion won in the first half of the year, a 15.4% increase compared to the same period last year, while Shinsegae's operating profit reached 365 billion won, a 75.7% increase, marking its highest performance in the first half. The results from the first year of newly appointed heads of major subsidiaries last year will also be evaluated in this reshuffle.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.