Shinsegae Group, which announced the fastest executive and senior management personnel changes among major retailers in the past three years, is expected to carry out early personnel adjustments again this year around the Chuseok holiday in September. In particular, attention is focused on the appointment of a new head for the group's control tower, 'Gyeong Yeong-jeon-ryak (Head)', which has remained vacant for four months, and the direction of restructuring the strategy division.
According to industry sources on the 7th, Shinsegae Group shifted from its traditional year-end regular personnel system starting in 2023 to a system of mid-year ad-hoc appointments and early September personnel changes.
Within the group, there is a prevailing view that this trend will continue this year. The reasoning is that for a newly appointed CEO to set the business direction for the following year and identify new growth areas, it must be effective to begin work no later than September or October.
Following Jeong Yong-jin (Chairman)'s promotion in March 2024, Shinsegae Group formalized its ad-hoc personnel system and a strict accountability framework. New performance evaluation indicators (KPIs) were also introduced to allow for the immediate replacement of the CEO and relevant executives whenever management errors occur, such as insufficient results or damage to the company's image.
This ad-hoc personnel approach has already been applied multiple times. Notable examples include the successive replacements of SSG.com (e-commerce) and GMa Ket (CEO), which suffered deepening losses in 2024, and the immediate dismissal of the CEO of Starbucks Korea (SCK Company), who triggered controversy over the 'the 18th Tank Day' marketing campaign earlier this year.
The group's Management Strategy Division led by Jeong Yong-jin (Chairman) and E-Mart underwent major executive changes two years ago, while Shinsegae Co., Ltd., overseen by Jeong Yu-gyeong (Chairman), replaced numerous CEOs of key subsidiaries last year. Since the formalization of the corporate separation in October 2024 following Jeong Yu-gyeong (Chairman)'s promotion, it is understood that each subsidiary's CEO-level appointments are now independently decided by the two Nam Mae (Chairman) before being consolidated and announced by the group.
This year, attention centers on whether a new head at the In Sa-e-seon (President) level will be appointed for Shinsegae Group. The Management Strategy Division oversees all aspects of subsidiary management, including finance, human resources, and public relations, in addition to assisting the controlling family. As the person responsible for this organization, Gyeong Yeong-jeon-ryak (Head) holds the ultimate decision-making authority on operational matters.
<Gyeong Yeong-jeon-ryak (Head) has remained vacant for over four months since the dismissal of the previous incumbent at the end of April. Under Shinsegae Group's instructions, the Management Strategy Division has been working to transform into an organization that leads new businesses such as artificial intelligence (AI) and large-scale complex developments, aiming to identify future growth engines.
In the past, Gyeong Yeong-jeon-ryak (Head) has favored internal promotions over external hires. Appointing an insider could lead to subsequent executive-level personnel movements linked to that appointment. However, given Jeong Yong-jin (Chairman)'s emphasis on "bold challenges and innovation," there is also a possibility of a surprise external hire.
<Jeong Yong-jin (Chairman) formalized accountability management while managing the aftermath of the Tank Day marketing incident. In June, he was appointed as CEO of key subsidiaries E-Mart and Shinsegae Properties. His appointment as an executive director at E-Mart for the first time in 13 years is interpreted as a commitment to directly participate in E-Mart's management as the largest shareholder of Starbucks Korea, pushing for rigorous restructuring, while taking responsibility for future growth by successfully leading large-scale complex developments such as AI data center sites and Starfield Cheongna through his role as CEO of Shinsegae Properties.
Meanwhile, a representative of Shinsegae Group stated that there is no confirmation yet regarding the September pre-Chuseok personnel announcements or the appointment of a new Gyeong Yeong-jeon-ryak (Head).
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