[Edaily Reporter Han Jeon-jin ] Shinsegae Co.,Ltd Chairman Chung Yong-jin is returning as CEO of E-MART Co., Ltd.(139480) for the first time in 13 years. The keyword for his management style is “pragmatism.” In the core business, he prioritizes proven methods and track records. Even if a format was first successful with a competitor, he will actively adopt it if it helps the core business’s competitiveness and profitability, and he selects personnel based on performance. With Chairman Chung’s return as CEO of E-MART Co., Ltd., this pragmatic management style is expected to gain even greater momentum.

the Success Formulas of Daiso and Coupang… Personnel Decisions Prioritize ‘Performance’

According to industry sources on the 11th, Shinsegae Co.,Ltd nominated Chairman Jeong as a co-CEO of E-MART Co., Ltd during its regular executive reshuffle last month. This marks 13 years since Chairman Jeong stepped down from his positions as a registered director at Shinsegae Co.,Ltd and E-MART Co., Ltd in March 2013. Following his appointment as CEO of Shinsegae Property last June, he will also serve as CEO of E-MART Co.,Ltd. after next year’s annual shareholders’ meeting. Kim Hong-guk, CEO of Shinsegae Casa, who was also nominated as a co-CEO, will be in charge of day-to-day operations and performance management, while Chairman Jeong is expected to directly oversee the implementation of the group’s mid- to long-term strategies at E-MART Co.,Ltd.

In terms of business approach, a pragmatic streak is evident in his adoption of proven formulas from competitors. A prime example is “Wow Shop,” an ultra-low-price household goods store that recently began full-scale operations at the Wolgye and Eunpyeong locations. Applying the fixed-price model pioneered by Daiso, the concept began last December with a curated zone of 66.1 square meters (20 pyeong) at the Wangsimni store, offering about 1,300 items. Within 10 months, it has expanded into a dedicated store spanning approximately 330 square meters (100 pyeong) with over 12,000 proprietary products. Combined with the Wow Shop zones within E-MART Co., Ltd. and Everyday stores, there are now about 130 locations nationwide, and the company plans to increase the number of medium- to large-sized specialty stores to five by the end of the year.

Online, Gmarket is adopting and expanding free returns—a core competitive advantage of Coupang. Last August, Gmarket introduced free returns for members of its paid membership program “Kkok,” waiving return fees even for simple changes of heart, and in September, it expanded this policy to include “Seller Star Delivery”—where sellers ship directly—increasing the number of eligible products by 163%. The “Wow Membership,” which bundles free shipping, early morning delivery, and free returns, is considered a key mechanism through which Coupang has secured loyal customers. Gmarket, an open marketplace based on commission fees, is now stepping up its efforts to attract customers by even covering return costs.

In personnel management, pragmatism manifests as a performance-based approach. Shinsegae Co.,Ltd TV Shopping, led by CEO Kim Hong-guk, turned a profit, shifting from an operating loss of 3.7 billion won in 2019 to an operating profit of 25.6 billion won the following year. Starting in late 2022, he also led efforts to reduce Shinsegae Casa’s losses. Born in 1964, he is one year older than his predecessor, CEO Han Chae-yang, but was selected to lead both E-MART Co., Ltd. and SSG.com. The group stated, “We will continue to select talent based solely on ability and competence.” SSG.com, which he will also oversee, has posted losses for seven consecutive years since its launch in 2019, putting his track record of improving profitability to the test once again.

◇A Two-Pronged Strategy: Focus on Profitability in Core Businesses, Bold Investment in Future Ventures

This approach is closely tied to financial performance. E-MART Co., Ltd.’s standalone operating profit for the first half of this year rose 15.4% year-over-year to 171.9 billion won, but consolidated operating profit fell 25.2% to 135.3 billion won due to poor performance by subsidiaries, including Starbucks Korea’s first-ever quarterly loss. Consolidated revenue also declined for the second consecutive year, falling from 29.4722 trillion won in 2023 to 28.9704 trillion won last year. Since the company’s structure relies on core business profits to offset losses from affiliates, it must further improve profitability.

Meanwhile, the group is making large-scale investments in future businesses. Shinsegae Co.,Ltd. is moving forward with a 250 MW (megawatt) AI data center—estimated to cost 10 trillion won—in partnership with U.S.-based Reflection AI, and established “SSG AI KOREA” and “SSG AI DC” in quick succession last July and August. Shinsegae Co.,Ltd is investing $1 billion (approximately 1.4 trillion won) in Paramount Skydance’s acquisition of Warner Bros. Discovery and is also pursuing a $500 million (approximately 750 billion won) joint venture with Oko Group for overseas hotel development. This is a two-pronged strategy: maintaining the core business through proven methods while making bold decisions for the future.

Above all, now that Chairman Jeong has stepped to the forefront of management under the banner of “accountable leadership,” delivering tangible results in the core business has become crucial. Since he must take direct responsibility for any failures, minimizing trial and error is key. This is why the company is combining externally proven methods—whose effectiveness has been confirmed by customer response—with the strengths of each business unit. The logic underpinning Chairman Jeong’s pragmatism is to build results using proven models in the core business while investing in growth potential in new areas.

An industry insider commented, “Being open to adopting competitors’ successful methods signifies a commitment to prioritizing tangible benefits over pride,” adding, “With Chairman Jeong’s return as CEO, the organization will increasingly prioritize customer acquisition and profitability over traditional approaches.” The insider further noted, “Since delivering results in the core business is essential to generating the financial capacity to invest in future ventures, restoring E-MART Co., Ltd.’s competitiveness is the key task that will underpin Chairman Jeong’s new business vision.”