Shinsegae Replaces 40% of CEOs Amid Performance Decline... "Establishing a Performance System" (Comprehensive)

40% of CEOs Replaced at Shinsegae and Emart
Introduction of Dual CEO and Integrated Headquarters System
Determination to Confront Business Environment Amid Performance Decline

Shinsegae Group conducted its regular executive reshuffle on the 20th, replacing nearly half of its CEOs. This move is seen as a commitment to choosing change and renewal while establishing a performance-focused system. As the decline in business performance continued, it is also interpreted that the owner family took the initiative to implement personnel reforms. As Shinsegae Group used the word 'performance' six times in its personnel announcement, it reflects a blueprint to form an organization capable of delivering results by breaking away from the existing operational system.

Park Joo-hyung, the newly appointed CEO of Shinsegae (left), and Han Chae-yang, the newly appointed CEO of E-Mart. [Photo by Shinsegae]

On the morning of the same day, Shinsegae Group appointed Park Juhyung, CEO of Shinsegae Central City, as CEO of Shinsegae, and Han Chaeyang, CEO of Chosun Hotel & Resort, as CEO of E-Mart, as part of the 2024 regular executive reshuffle. Shinsegae Group explained this reshuffle by saying, "We focused on change and renewal, synergy enhancement, and building a performance-driven system," adding, "We have reorganized the company's overall competitiveness and established a new, execution-capable organization to boldly confront the management environment and pioneer the future." Through this reshuffle, about 40% of the CEOs were replaced. The company stated that young talents were boldly promoted and assigned.

CEO Han will concurrently serve as CEO of E-Mart, E-Mart Everyday, and E-Mart 24. The previous CEO Kang Heeseok, who concurrently led E-Mart and SSG.com, is reported to be stepping down without taking on another position. Kang, who took office as E-Mart CEO in October 2019, originally had a term until March 2026. Inside and outside the group, it is said that Kang is resigning to take responsibility for the recent deterioration in profitability. Since last year, E-Mart has experienced poor performance, recording an operating loss of 53 billion KRW in the second quarter of this year.

CEO Han will also concurrently serve as CEO of the offline retail business units E-Mart, E-Mart Everyday, and E-Mart 24. This is the first time that one leader is heading all three entities. Under the integrated headquarters system, Hwang Woonki, Executive Director and Head of E-Mart's Merchandising Headquarters, was appointed as the head of the integrated headquarters for E-Mart, E-Mart Everyday, and E-Mart 24. Shinsegae Group's intention is to break away from the existing operational system and build an organization that can generate integrated synergy to improve performance.

CEO Park will concurrently serve as CEO of Shinsegae Central City in addition to being CEO of Shinsegae. Song Hyunseok, CEO of Shinsegae Food, will concurrently lead Shinsegae Food and Shinsegae L&B. Lim Youngrok, CEO of Shinsegae Property, will oversee Shinsegae Property and Chosun Hotel & Resort. Shinsegae Group expects that this integrated CEO system will consolidate organizational capabilities and lay the foundation to maximize synergy and performance creation.

Lee Seok-gu, appointed as the CEO of Shinsegae Live Shopping in the personnel announcement on the 20th, currently serving as the head of Shinsegae's New Growth Promotion Committee.
[Photo by Shinsegae]

Shinsegae Group has appointed Lee Seokgu, CEO of Shinsegae's New Growth Promotion Committee, as CEO of Shinsegae Live Shopping. This marks another position change just over four months after he took office as head of the New Growth Promotion Committee in May. As the T-commerce market has fallen into a slump and Shinsegae Live Shopping recorded losses, it is analyzed that the group selected a figure who can generate synergy with Shinsegae. Shinsegae Live Shopping was incorporated into Shinsegae from E-Mart in August last year.

Shinsegae Group has recruited Kim Hyunwoo, a content business expert, as CEO of Mindark. Additionally, Lee Juchul, Head of Strategic Business at Gmarket, has been appointed as CEO of W Concept Korea. A Shinsegae Group official said, "Considering that 40% of the CEOs were replaced, you can see how deep this reshuffle is," adding, "The core of this reshuffle is the organizational composition aimed at delivering performance."

Starting with this reshuffle, Shinsegae Group also created a retail integrated cluster. The purpose is to generate integrated synergy by grouping six affiliates?E-Mart, E-Mart Everyday, E-Mart 24, Shinsegae Property, SSG.com, and Gmarket?both online and offline. Although nothing has been concretely decided yet, the company explained that CEO Han Chaeyang, who leads E-Mart, E-Mart Everyday, and E-Mart 24, will play a central role in driving collaboration.

Shinsegae Group also pursued overall changes that go beyond the existing organizational operation methods, such as introducing an integrated headquarters system for subordinate organizations and heads, establishing a hybrid organizational system for synergy, and implementing generational changes by work area. Shinsegae Group stated, "We have carried out bold innovative personnel changes to fundamentally renew and strengthen organizational competitiveness and maximize new performance creation and synergy," and added, "We will continue to strengthen the group's future preparation through thorough performance-based personnel management."

This content was produced with the assistance of AI translation services.