Shinsegae Group's regular executive reshuffle for 2027, announced on the 23rd, is seen as reaffirming Chairman Chung Yong-jin's pledge to practice what he has called accountable management. Facing an unsettled mood inside and outside the group following a marketing controversy at Starbucks, Chung added to his own burden of responsibility while setting stricter standards for the group.
Chung returns as chief executive of E-Mart (139480.KS) for the first time in 13 years, a move that places him under evaluation by the board and shareholders. He tapped Kim Hong-keuk, head of Shinsegae Casa, as co-CEO to lead E-Mart alongside him. Kim joined Shinsegae E-Mart in 1996 and built his career in merchandising and strategy, making his name as a sales strategy specialist. He previously led Shinsegae TV Shopping, Shinsegae Live Shopping and Shinsegae Casa.
The change at the top of E-Mart comes as the retailer shows signs of the stronger core business that Chung has emphasized, with second-quarter separate operating profit rising 64% to 25.6 billion won ($17.9 million). Analysts said the appointment signals that Chung has set a higher bar for E-Mart's role within the group. "The previous chief executive, a finance specialist, delivered steady earnings improvement, but Kim, who comes from sales, has been handed the task of pursuing much stronger growth," an industry official said.
Kim will concurrently serve as chief executive of SSG.com. With the balance of power in retail shifting online, the dual role is seen as reflecting Chung's intent to treat e-commerce, not just brick-and-mortar stores, as a core business to be nurtured.
Hur Min-ho, former chief executive of CJ Olive Young, has been named to lead Shinsegae Casa, where he will drive expansion of the Casamia and JAJU businesses. Hur worked in Shinsegae Department Store's merchandising division and Shinsegae International's overseas products team before being appointed chief executive of CJ Olive Young in 2008. Over the following decade he played a major role in expanding the chain's store count and sales.
Hur will also head the cosmetics division at Shinsegae International (031430.KS). Through a reorganization, Shinsegae International is splitting its business into a fashion division and a cosmetics division, each under its own dedicated management structure. The fashion division will be led by Kim Deok-ju, currently chief executive of Shinsegae International.
The group also overhauled its management strategy office, which serves as its control tower. Choi Taek-won, chief executive of SSG.com, was named head of management support, and Park Seung-hak, head of the leisure business unit at Josun Hotels & Resorts, was appointed head of the external relations division. Jeon Sang-jin, executive vice president in charge of management at the strategy office, was retained, keeping the unit's central axis in place. The post of head of the management strategy office, vacant since April, was not filled. Ki In-joo, chief executive of SMPMC, was named head of the Shinsegae baseball club to accelerate preparations for what the group calls the era of the Cheongna domed stadium.
The promotion of younger talent also stood out. Shinsegae Group named 36 new executives in this reshuffle, the most ever. Executives in their 40s accounted for 18% of the total, also a record high. The move is seen as aimed at refreshing the organizational atmosphere and building a work culture capable of delivering results in new businesses. This year Chung has been opening up new businesses in partnership with global companies, including Reflection AI in artificial intelligence, the Aman Group in real estate development and Skydance in content.
The group said it plans to continue its overhaul through ad hoc appointments following this reshuffle. "We will maximize the competitiveness of our core businesses by identifying talent on the basis of performance, and we will also produce results in future growth businesses," Shinsegae Group said.