Shinsegae Group reshuffles 40% of CEOs amid sluggish earnings

2023.09.21 11:56:01 | 2023.09.21 15:10:32

From left: Park Ju-hyung, Han Chae-yang, Song Hyun-suk, Im Young-rok, and Lee Seok-koo. [Courtesy of Shinsegae Group]이미지 확대

From left: Park Ju-hyung, Han Chae-yang, Song Hyun-suk, Im Young-rok, and Lee Seok-koo. [Courtesy of Shinsegae Group]



South Korean retail giant Shinsegae Group on Wednesday carried out a massive reshuffle, replacing nine out of 25 chief executive officers in a sweeping overhaul, a move to arrest the deterioration of its business performance.

Shinsegae Group opted for an unusual early schedule for this year’s regular executive appointments, bringing them forward by one month, in contrast to the usual October timing.

The decision is interpreted as a clear indication of the group’s commitment to swiftly initiate business restructuring through its newly appointed CEOs for the next year.

By filling the leadership positions at Emart and Shinsegae with internal personnel, the group has ensured organizational stability while embarking on its mission of corporate rejuvenation.

The introduction of the “Integrated CEO System,” where one CEO oversees multiple affiliate companies within the same business group, underscores the group’s focus on enhancing profitability through operational efficiency.

The most highly anticipated appointment in this year’s executive reshuffle is that of Han Chae-yang as the CEO of Emart.

Han, a graduate of Mapo High School and Yonsei University’s business school, began his career at Shinsegae Group in 2001 as a manager in the group’s management support division, where he primarily handled strategic responsibilities.

In 2019, he took on the role of CEO at Josun Hotels & Resorts and successfully navigated the challenges posed by the Covid-19 pandemic the following year, leading the company to profitability.

Han’s responsibilities will now encompass not only Emart but also its retail subsidiaries, including Emart Everyday and Emart 24.

Shinsegae Group established a new retail integrated cluster in this reshuffle, aimed at overseeing both online and offline retail companies.

Given Han’s leadership role in overall offline retail business, it is expected that his influence will extend to platforms such as SSG.com and Gmarket.

Meanwhile, Lee In-young, CEO of SSG.com, and Chun Hang-il, CEO of Gmarket, will continue in their roles, while Lee Ju-chul, head of Gmarket’s strategy business division, was nominated to lead W Concept Korea.

Park Ju-hyung will concurrently serve as the CEO of Shinsegae while retaining his previous position as the CEO of Shinsegae Central City.

Graduating from Gwangju High School and Dongguk University with a major in accounting, Park has been a dedicated Shinsegae employee for 39 years.

Since taking on the role of CEO at Shinsegae Central City in December 2016, he has consistently increased both sales and operating profit, earning trust within the company.

Park’s dual role as CEO of both Shinsegae and Shinsegae Central City is poised to create synergies among various locations, including Shinsegae Department Store Gangnam Branch, Central City Terminal, JW Marriott Hotel Seoul, and Famille Station.

Song Hyun-suk, CEO of Shinsegae Food, will assume oversight of the entire food and beverage business while concurrently holding the position of CEO of Shinsegae L&B.

Im Young-rok, CEO of Shinsegae Property, will also serve as CEO of Josun Hotels & Resorts, where he will oversee the development business.

Lee Seok-koo, head of Shinsegae’s New Growth Promotion Committee, has been appointed as the new CEO of Shinsegae Live Shopping.

Lee, who previously led Starbucks Korea for 11 years and played a pivotal role in its growth. Kim Hyun-woo, an expert in content business, has been recruited as the CEO of Mindmark, a company engaged in media content business.

By Kim Gyu-sik and Minu Kim

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]