[Edaily Reporter Han Jeon-jin ] Shinsegae Co.,Ltd Chairman Chung Yong-jin is returning to the forefront of management at E-MART Co., Ltd.(139480). Unlike in 2013, when he stepped down as a registered director and entrusted the business to professional managers, this time he will personally serve as CEO to oversee performance. The replacement of key executives, including CEO Han Chae-yang, and the appointment of 36 new executives—the largest number in the company’s history—are part of this same strategy. The group appears to be accelerating its structural reform through direct management and a generational transition.

On the 23rd, Shinsegae Co.,Ltd. announced its 2027 regular executive appointments, which included these changes. Chairman Jeong is scheduled to officially take office as CEO of E-MART Co., Ltd. following the necessary appointment procedures, such as the shareholders’ meeting. Kim Hong-guk, CEO of Shinsegae Casa, will succeed Han Chae-yang and take charge of both E-MART Co., Ltd. and SG CO., LTD. New personnel were also appointed to key positions within the Business Strategy Office, the group’s control tower.

◇Jeong Yong-jin Returns After 13 Years…Shifting from Professional Management to Direct Leadership

Chairman Jeong’s return to E-MART Co.,Ltd. is particularly significant as it stands in contrast to the situation in 2013. Although Chairman Jeong was appointed CEO and a registered director of E-MART Co.,Ltd. in 2011 and participated in management, he stepped down from all registered director positions at Shinsegae Co.,Ltd. and E-MART Co.,Ltd. in March 2013. At the time, the group announced a policy of entrusting professional managers with the responsible management of existing businesses, while Chairman Jeong would focus on identifying new growth engines. It was a structure in which the owner set the overall direction and professional managers ran the business.

The difference this time is that Chairman Jeong is once again taking on the role of CEO to strengthen his direct management. Following his appointment as CEO of Shinsegae Co.,Ltd. Property last June, he will now also serve as CEO of E-MART Co., Ltd., signifying his intention to personally assume management responsibility for the group’s core businesses. He will establish a system of separate CEOs with Kim Hong-geuk, CEO of E-MART Co., Ltd., and Lee Hyung-cheon, CEO of Shinsegae Co.,Ltd. Property. This is interpreted as a structure where Chairman Jeong oversees mid- to long-term strategies and new businesses, while professional managers execute individual business operations.

Behind these changes lie the group’s performance and growth challenges. E-MART Co., Ltd. showed signs of recovery in its core business, with standalone operating profit for the first half of this year reaching 171.9 billion won—a 15.4% increase compared to the same period last year. In contrast, consolidated operating profit fell 25.2% to 135.3 billion won. Weak performance at Starbucks Korea and persistent losses at SG CO., LTD. weighed on the group’s results. In addition to restoring competitiveness in its offline operations, the company now needs to improve the profitability of its online business and secure future growth engines.

The appointment of CEO Kim Hong-guk to replace CEO Han Chae-yang is also linked to these challenges. While CEO Han, a finance and strategy expert, focused on cost efficiency and restoring profitability, CEO Kim—who previously served as head of E-MART Co., Ltd.’s Merchandising Division—has strengths in merchandise planning (MD) and sales. The decision to entrust CEO Kim with SG CO., LTD. as well is interpreted as a strategic move to actively leverage E-MART Co., Ltd.’s product competitiveness and store network for its online business.

◇36 New Executives Appointed… Organizational Renewal Through Generational Transition

Another key aspect of this personnel reshuffle is generational transition. Shinsegae Co.,Ltd promoted a record 36 new executives and actively appointed executives in their 40s. As a result, the proportion of executives in their 40s among the group’s total executives has risen to a record high of 18 percent. The plan is to enhance the organization’s execution capabilities by replacing key executives while simultaneously promoting young managers to leadership positions. Starting with this round of appointments, Shinsegae Co.,Ltd plans to continue organizational renewal through periodic personnel changes.

The Group’s Management Strategy Office has also been reorganized. Choi Taek-won, former CEO of SG CO., LTD., was appointed Head of Management Support, overseeing personnel and audits, while Park Seung-hak, former Head of the Leisure Business Division at Joseon Hotel & Resorts, was named Head of the External Relations Division, responsible for public relations and government relations. Jeon Sang-jin, Executive Vice President in charge of Management, was retained in his position, and the role of Head of the Management Strategy Office—which has been vacant since last April—remained unfilled. This effectively reorganizes the core advisory team while Chairman Jeong personally oversees the group’s strategy.

However, a uniform personnel shake-up did not take place across all affiliates. The department store division, led by Chairwoman Jeong Yu-kyung, maintained management continuity by retaining the CEOs of key affiliates such as Shinsegae Co.,Ltd. In contrast, SHINSEGAE INTERNATIONAL separated its fashion and cosmetics divisions, and appointed Heo Min-ho—the former CEO of CJ Olive Young, who was recently brought in as CEO of SHINSEGAE Casa—to concurrently serve as CEO of the cosmetics division. This approach reflects a balanced application of stability and change based on the performance and challenges of each business unit.

The key question is whether this large-scale personnel reshuffle will translate into actual business results. As Chairwoman Jeong takes on the role of CEO herself, her responsibility for the performance of core businesses and investment outcomes has grown significantly. The new management team must also continue E-MART Co., Ltd.’s recovery while improving SSG.com’s loss-making structure. Chairwoman Jeong’s direct leadership and the generational transition are expected to be put to the test to see if they yield tangible results.

Shinsegae Co.,Ltd stated, “Chairman Jeong has decided to exercise direct leadership to spearhead the group’s transformation during this period of major industrial transition centered on artificial intelligence,” adding, “We will maximize competitiveness in our core businesses and achieve results in future growth sectors through performance-based talent recruitment.”