SSG.com is replacing executives across its main business divisions, a move seen as an attempt to overhaul its operations and organization after years of losses and ahead of a spinoff set for December.
The company will dismiss current executives in charge of data and infrastructure, sales, logistics and human resources on the 23rd and then name their replacements, according to industry sources on the 22nd. The reshuffle covers virtually every major function at the company, from infrastructure to organizational management and front-line operations.
The personnel changes come ahead of SSG.com's spinoff in December. The company plans to hold an extraordinary shareholders' meeting in late October to approve a plan to spin off its lifestyle business division, with the split to be completed on Dec. 1. SSG.com, the surviving entity, will handle existing e-commerce operations including grocery-focused online shopping, while the newly created Shinsegae Mall (tentative name) will take charge of fashion, beauty and lifestyle businesses.
Industry watchers see the organizational overhaul as timed to coincide with a restructuring of ownership under which E-Mart will own SSG.com and Shinsegae will own Shinsegae Mall. With the group's business structure being reorganized, SSG.com appears to be assembling a new senior management team to tighten its organization and accelerate an earnings turnaround.
The need for a broad organizational revamp has grown as revenue continued to shrink through the first half of this year. SSG.com saw sales decline and losses widen at the same time last year. Revenue in 2025 was 1.347 trillion won ($940 million), down 14.5% from a year earlier, while the operating loss came to 117.8 billion won, widening by more than 40 billion won. Sales fell and operating losses persisted in the first half of this year as well. First-half revenue was 633.1 billion won, down 10.5% from a year earlier. The operating loss was 51.4 billion won, up 2.3 billion won from 49.1 billion won in the same period last year.
The latest shake-up comes just a year after the company replaced its chief executive. In its regular executive reshuffle last September, Shinsegae Group named Choi Taek-won, then head of E-Mart's sales division, as chief executive of SSG.com.