[Edaily Reporter Kim Jeong-yu] Managing a business while pursuing profit and considering social responsibility at the same time. This is the definition of “responsible management” found in the Korean dictionary.

Shinsegae Group Chairman Chung Yong-jin made a “surprise announcement” on the 8th. He promised to register himself as a director of #E-Mart and Shinsegae Property, the group’s flagship affiliates. As the head of a conglomerate, this is perhaps the most intuitive “action” he could take to demonstrate his commitment to responsible management.

Chairman Chung and Shinsegae Group have recently suffered tangible and intangible damage due to the “Starbucks marketing controversy.” In addition to the controversy over allegedly disparaging the spirit of the May 18 Democratization Movement, some of the political image Chairman Chung had built up over the years was also tarnished, leading to a deterioration of the group’s overall image. Of course, Chairman Chung quickly issued two public apologies following the controversy, but some public opinion still seems unwilling to fully accept them.

In response, Chairman Jung chose to confront the situation head-on through responsible management. Although he previously served as a registered director at E-Mart from 2010 to 2011, he stepped down from the board in 2013. Since assuming the chairmanship in 2024, he has not participated in the board of directors for a total of 13 years. A registered director is a position that carries legal responsibility for management. Having his name listed as a registered director of a core affiliate for the first time in 13 years is a significant decision for Chairman Jung. The weight of this decision is evident from Chairman Jung’s message alone: “I will take seriously the demand to bear clear responsibility for management.”

In hindsight, the Starbucks incident appears set to become a turning point for Chairman Jung and the Shinsegae Group. Could this incident, which sparked significant social controversy, serve as a lesson for the Shinsegae Group, providing an opportunity to further deepen its commitment to “responsible management”? Chairman Jung’s task now is to transform this crisis into an opportunity for another leap forward.

It is crucial for a company to avoid being drawn into political frames. A single careless remark by the group’s chairman can trigger a butterfly effect that tarnishes the company’s image. In such cases, the repercussions inevitably extend to the countless employees and business partners of the company. We look forward to seeing how Chairman Jeong, as a “registered executive,” will transform Shinsegae Group through his own unique approach to responsible management.