[Edaily Reporter Kim Jeong-yu] Shinsegae Group Chairman Chung Yong-jin (pictured), who recently bowed his head in apology over the "Starbucks incident," is stepping up to take responsibility for management by assuming the role of CEO at the group’s flagship companies, #E-Mart and Shinsegae Property. He is expected to officially join the board of directors and take direct charge of the entire group.

Shinsegae Group announced on the 8th that it has nominated Chairman Jung as a co-CEO of Shinsegae Property. Shinsegae Property will hold a board meeting soon to recommend Chairman Jung as a registered director, followed by his official appointment through a shareholders’ meeting. E-Mart also plans to nominate Chairman Jung as a co-CEO during this year’s regular executive reshuffle and finalize his appointment at next year’s shareholders’ meeting.

Chairman Jeong stated, “I take the market’s demand for clear accountability in corporate management very seriously,” adding, “Going forward, I will be evaluated by the board of directors and shareholders in my role as CEO.”

Analysts suggest that Chairman Chung’s decision is linked to the recent Starbucks marketing controversy, which sparked criticism for disparaging the May 18 Democratization Movement. E-Mart is currently the largest shareholder of Starbucks Korea and bears significant responsibility for the company’s operations. Given that the entire Shinsegae Group was damaged by the recent Starbucks marketing incident, this move is interpreted as Chairman Chung’s determination to personally oversee the matter and take responsibility.

With Chairman Chung now serving as CEO of both E-Mart and Shinsegae Property, the total number of affiliates within the group where he directly participates on the board of directors rises to three. Previously, Chairman Chung was appointed as the inaugural chairman of the board of AG Global Holdings (then Grand Opus Holdings), a joint venture between Shinsegae Group and Alibaba International, last year.

Taking on the role of CEO at Shinsegae Property is an expression of his determination to personally lead the group’s future growth engines. Shinsegae Property is the operator of “Starfield” and, as of last March, is also the affiliate overseeing practical operations such as the construction of an AI data center in partnership with U.S.-based Reflection AI. This move is also interpreted as a commitment to take responsibility for both the present and future of the Shinsegae Group.

A Shinsegae Group official stated, “Going forward, the Group intends to listen more closely to the market’s critical voices directed at the company and Chairman Jeong, and to be evaluated based on our management performance.”

In addition, Shinsegae Group has appointed Lee Hyung-cheon, a professional manager and former head of the Development Division, as co-CEO of Shinsegae Property. As for the troubled Starbucks Korea, Shin Dong-woo, head of the Support Division at Shinsegae Property, has been appointed as the new CEO. Shin, a finance expert, previously served as head of the Strategic Planning Division at Starbucks Korea. He plans to make the development of a revitalization plan for Starbucks his top priority moving forward.