SSG.com, formed from the merger of E-Mart Mall and Shinsegae Mall, will split into two companies after seven years. SSG.com will focus on online grocery shopping, while the newly established Shinsegae Mall (tentative name) will handle premium e-commerce centered on fashion, beauty, and lifestyle products.
On August 27, SSG.com held a board meeting and approved the spin-off of its lifestyle business division. Following the split, the existing company will retain the name SSG.com, while the new entity will be called Shinsegae Mall (tentative name).
The spin-off will be executed as a human division, where shares of the new company will be distributed based on the existing shareholders' ownership ratios. Currently, E-Mart holds a 65% stake in SSG.com, while Shinsegae owns 35%. After the split, both E-Mart and Shinsegae will maintain their shares in SSG.com and the new Shinsegae Mall at the same ratios.
SSG.com aims to enhance the expertise and operational efficiency of each division by separating its business areas. By independently managing the distinct grocery and lifestyle sectors, the company intends to respond more swiftly to market changes and accelerate growth.
An SSG.com representative stated, "We are pursuing the spin-off of the lifestyle business division to enhance business specialization and efficiency. This will allow us to establish a specialized business structure that can respond flexibly and quickly to the rapidly changing market environment and lay the groundwork for significant growth."
After the split, the existing SSG.com will concentrate on strengthening its competitiveness in online grocery shopping and existing commerce operations. The new Shinsegae Mall will develop into a premium e-commerce platform focused on fashion, beauty, and lifestyle products.
Although the companies will be separate, customer interactions and business connections will be maintained. After the split, customers will still be able to purchase fashion, beauty, and lifestyle products from Shinsegae Mall through the SSG.com app, which will integrate with the Shinsegae Mall platform.
Shinsegae Mall plans to enhance its platform competitiveness while expanding customer touchpoints by connecting with various sales channels, including SSG.com. The goal is to strengthen business specialization for each company while ensuring that customers continue to have a similar shopping experience.
SSG.com will hold an extraordinary shareholders' meeting at the end of October to approve the spin-off plan, with the split scheduled to be finalized on December 1.
An SSG.com representative remarked, "Even after the split, we will maintain customer interactions and necessary business connections while continuously enhancing the competitiveness of each company."
* This article has been translated by AI.
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