Shinsegae Group is expected to conduct its regular executive reshuffle around the Chuseok holiday, with a focus on performance-based management restructuring. Yong-jin Jeong is anticipated to be appointed as the CEO of E-Mart, while the selection of a new head for the management strategy office and the spin-off of SSG.com are also under scrutiny, raising questions about potential changes in the independent management structure of Yong-jin and Yoo-kyung Jeong.
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, 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 affiliates' leaders, including those at SSG.com, Shinsegae International, Shinsegae Food, Shinsegae DF, and Chosun Hotel & Resort.
This year, there is speculation that 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 affiliate leaders were replaced last year, this year's reshuffle is expected to focus more on assessing the performance of the existing management rather than a significant overhaul.
One of the key points of interest in this year's appointments is Yong-jin Jeong's expansion of direct management. In June, he agreed to take on the roles of CEO for both E-Mart and Shinsegae Property. At Shinsegae Property, he will work alongside CEO Lee Hyung-cheon in a co-CEO system, 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 office is also a variable. In April, Shinsegae Group released the then-head of the management strategy office, Lim Young-rok, from his dual role but did not appoint a successor. The group has stated that Yong-jin Jeong will oversee the management strategy office 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 plans to split into two entities on December 1: a surviving corporation focused on grocery business and Shinsegae Mall, which will handle fashion, beauty, and lifestyle sectors. 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 dividing the business areas according to each side's core sectors may facilitate future share adjustments for a potential separation of the affiliates. However, the specific method and timing for any 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 of the year. The performance of the newly appointed leaders of major affiliates from last year will also be evaluated in this reshuffle.
* This article has been translated by AI.
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