Shinsegae Group is expected to announce its regular executive reshuffle as early as tomorrow, with Chairman Chung Yong-jin set to return as a registered director and co-CEO of E-Mart, a key group affiliate, for the first time in 13 years. Some major affiliates are also expected to see changes in their leadership.
According to retail industry sources on Oct. 22, Shinsegae Group has been notifying senior executives of their departures since this afternoon. Some senior executives at the managing director level or above at group affiliates are understood to have received notices that they will be leaving.
The group has traditionally notified departing executives a day before announcing its regular reshuffle. Given this practice, it is expected to announce executive appointments, including those of major affiliate CEOs, on Thursday morning.
The most closely watched appointment this year is Chung's return to E-Mart as a registered director. In June, Shinsegae Group said Chung had been designated to become co-CEO and a registered director of E-Mart in this year's regular executive reshuffle, with his formal appointment to be finalized at next year's shareholders' meeting.
Chung pledged to overhaul Starbucks Korea and Shinsegae Group following a marketing controversy involving Starbucks. E-Mart is the largest shareholder of Starbucks Korea, and its CEO bears significant responsibility for the composition of Starbucks Korea's board and the company's operations.
After announcing his planned return to E-Mart's board in June, Chung said, "I take seriously the market's demand that I assume clear responsibility for the company's management. Going forward, I will be evaluated by the board and shareholders in my capacity as CEO."
If appointed co-CEO of E-Mart, Chung will serve on the boards of three group affiliates. In June, he was appointed co-CEO of Shinsegae Property, the group's real estate development arm. Late last year, he was named the inaugural chairman of the board of AG Global Holdings, a joint venture between Shinsegae Group and Alibaba International.
Chung's roles at Shinsegae Property, which oversees new business investments such as AI data centers and the Warner Bros. acquisition, as well as major development projects such as Starfield Cheongna, and at E-Mart, the group's core business, are seen as signaling his intention to lead both established operations and new growth initiatives.
Another key question in this year's reshuffle is whether the group will appoint a new head of its management strategy office at the president level. The office oversees the affairs of the owner family and manages affiliates' business operations, finance, human resources and public relations. Its head effectively serves as the final decision-maker at the working level. The position has been vacant for more than four months since the previous chief was dismissed at the end of April.
At Chung's direction, Shinsegae Group has been transforming the office into an organization responsible for overseeing new businesses, including AI and large-scale mixed-use developments, while identifying future growth drivers.
The group has generally promoted internal candidates rather than hiring outsiders for the position. An internal appointment could lead to further executive-level changes, including CEO transfers at affiliates. However, given Chung's emphasis on "bold challenges and innovation," an unexpected appointment from outside the group remains possible.
The reshuffle is also expected to clarify the separation between Shinsegae Group, led by Chung, and Shinsegae Inc., led by his sister, Chairman Chung Yoo-kyung. Two years ago, the management strategy office and E-Mart, under Chung Yong-jin, replaced many of their affiliate CEOs. Shinsegae Inc., overseen by Chung Yoo-kyung, made extensive leadership changes last year.
Since the group officially announced the separation of the siblings' business interests in October 2024, when Chung Yoo-kyung was promoted to chairwoman, CEO-level appointments at their respective affiliates have reportedly been decided independently by the two siblings and then consolidated for announcement by the group.
in LIVING
