Emart with New Leadership Faces First Test Next Month

Transition to CEO Han Chaeyang's Leadership
30th Anniversary Discount Event
Group Affiliates Participate in SSG Day
Expectations for Rebound Amid Poor Performance

Emart, now under the leadership of CEO Han Chaeyang, will face its first major test next month. This comes in the form of a special event celebrating its 30th anniversary and the ‘SSG Day,’ which involves all affiliates of the Shinsegae Group. Attention is focused on what kind of results Emart will deliver after the leadership change, especially following the ‘earnings shock’ it suffered in the post-COVID-19 endemic period.

Exterior view of Emart Meat Center located in Gwangju-si, Gyeonggi-do.
[Photo by Asia Economy DB]

According to industry sources on the 13th, Emart will mark its 30th anniversary on November 12. Around this date, Emart plans to hold a large-scale discount event to celebrate the anniversary. The event will run until the end of November, and Emart is reportedly preparing the largest-ever volume and discount rates across each category to commemorate the milestone. An Emart representative said, "While we have held anniversary discount events every year, this year we are preparing on an unprecedented scale to celebrate the 30th anniversary."

Emart is also placing significant emphasis on the SSG Day event, which will take place in the same month and involve all affiliates of the Shinsegae Group. The SSG Day event will see full participation from 19 group affiliates, including department stores, marts, fashion, and food & beverage sectors. Due to competition among affiliates, the event will feature more generous discounts and a broader product lineup than usual. Although the exact start date has not been finalized, the company explained that the second week of next month is being strongly considered. Emart is focusing on management and marketing aspects not only for the anniversary special event but also for the SSG Day event.

Han Chaeyang, CEO of Emart [Photo by Shinsegae]

These events are significant as they mark the first large-scale occasions since Emart’s leadership change amid worsening performance this year. Previously, Shinsegae dismissed Kang Heeseok, the former co-CEO of Emart and SSG.com known as ‘Jung Yongjin’s man,’ and appointed Han Chaeyang, CEO of Chosun Hotel & Resort, as the new head. This personnel change was made despite Kang’s term having nearly three years remaining, and insiders both inside and outside Shinsegae suggested it reflected a sense of crisis due to continuous performance decline.

In fact, Emart’s consolidated sales last year reached KRW 29.3324 trillion, a 17.6% increase from the previous year, but operating profit sharply dropped from KRW 316.8 billion in 2021 to KRW 135.7 billion in 2022. This year, poor performance has continued, with Emart recording an operating loss of KRW 53 billion in the second quarter, signaling a red light across the group. Due to this performance deterioration, Emart’s stock price, which started the year at KRW 94,800, has recently fallen to the KRW 60,000 range.

Industry insiders are watching closely whether CEO Han, who took the helm amid a turbulent atmosphere caused by poor performance, can use the anniversary discount event and SSG Day as opportunities for a turnaround. An industry official said, "Since this is the first major annual event after the new CEO’s appointment, Emart will likely feel the pressure. This event will serve as the first test for the leadership change."

Moreover, Emart is reportedly planning to conduct personnel changes at the store manager level as early as the afternoon of the event day. This will be the first personnel reshuffle since CEO Han’s appointment, and the new store managers will also face their first verification stage during next month’s events.

For CEO Han, next month’s events also represent an opportunity to solidify her position within the group. Through the recent personnel changes, she has concurrently taken on the CEO roles of Chosun Hotel & Resort and Emart24, in addition to Emart. At the time, insiders speculated that Han’s concurrent leadership of major affiliates was a strategic move for intensive restructuring. This indicated an organizational reorganization under her direction, and next month’s events are expected to serve as a proving ground for this strategy. A Shinsegae Group official stated, "There are plans to create a retail integrated cluster combining six online and offline affiliates: Emart, Emart Everyday, Emart24, Shinsegae Property, SSG.com, and Gmarket. Currently, CEO Han, who oversees three of these affiliates, is expected to be at the center, but if performance does not support this, changes could occur at any time."

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