Strengthening Core Business Pays Off for Emart Under Chung Yongjin... Highest First-Quarter Operating Profit in 14 Years

Up 11.9% Year-on-Year, Operating Profit Reaches 178.3 Billion Won
Traders Leads Profitability with Record Quarterly Sales of 1 Trillion Won
Spatial Innovation at Discount Stores Drives Growth of Renovated Branches
Chairman Chung’s “Paradigm

Chairman Chung Yongjin of Shinsegae Group’s declaration of a “Year of Growth Again” in this year’s New Year’s address has translated into clear performance improvements. Emart overcame the effects of the domestic economic slowdown in the first quarter and achieved its highest operating profit in 14 years. Many believe that Chairman Chung’s persistent emphasis on bold innovation and challenges through his field management has taken root, leading to a significant boost in the company’s core competitiveness.

On May 13, Emart announced in a regulatory filing that, on a consolidated basis, operating profit for the first quarter of this year reached 178.3 billion won, an increase of 11.9% compared to the same period last year. Although sales declined by 1.3% year-on-year to 7.1234 trillion won, profitability reached a record high for a first quarter since 2012, when it posted 190.5 billion won.

Emart Headquarters. Photo by Jo Yongjun

On a separate basis, total sales in the first quarter increased by 1.9% year-on-year to 4.7152 trillion won, and operating profit rose by 9.7% to 146.3 billion won. This separate operating profit also marked the highest first-quarter figure in eight years since 2018.

Emart evaluated that the innovation, willingness to take on challenges, and core business competitiveness strategies consistently emphasized by Chairman Chung Yongjin have begun to yield improved results as early as the first quarter. Chairman Chung visited key business sites such as Starfield Market Jukjeon and Starfield Cheongna four times in the first quarter to inspect the implementation of these strategies.

By business division, the upward momentum of Traders was particularly notable. First-quarter sales rose by 9.7% year-on-year to 1.0601 trillion won, setting a new quarterly record, while operating profit increased by 12.4% to 47.8 billion won.

The company analyzed that, amid ongoing high inflation, strengthening the competitiveness of bulk and high cost-effectiveness (value for money) products received positive responses from customers. In fact, sales of Traders’ private brand (PB) “T Standard” increased by 40% year-on-year, and sales at “T Cafe” also grew by 24%. The number of visitors rose by 3%.

In the hypermarket segment, discount store sales slightly declined to 3.0327 trillion won, but operating profit increased by 2.8% to 80.3 billion won. The company credited improved cost efficiency through consolidated purchasing for the enhanced profitability. Space innovation, such as the renovation of existing stores, also played a significant role. Sales at the Ilsan branch, which was renovated as a Starfield Market, jumped by 75.1% year-on-year, while sales at the Dongtan and Gyeongsan branches rose by 12.1% and 18.5%, respectively. The number of visitors to the Ilsan branch surged by 104.3%, and the proportion of long-stay customers (over three hours) increased by an average of 87.1% across the three renovated branches. In addition, Emart’s signature discount event, the “Goraeit Festa,” saw both sales and customer numbers rise by 3.5% and 6.0%, respectively, compared to the same period last year.

Traders Suwon Hwaseo Branch T Cafe. Provided by Emart

Among consolidated subsidiaries, Chosun Hotel & Resort achieved net sales of 168.5 billion won, up 2.4% year-on-year, and operating profit of 2.1 billion won, a 116.7% increase. This was driven by higher occupancy rates and increased average spend per guest due to rising tourist numbers. SCK Company, which operates Starbucks, expanded its business by adding 21 new stores in the first quarter, resulting in a 7.3% increase in net sales to 817.9 billion won. However, operating profit declined by 16.5% to 29.3 billion won due to rising costs.

For the e-commerce business, SSG.com’s sales in the first quarter fell by 9.6% year-on-year to 322.6 billion won, with an operating loss of 21.9 billion won, continuing its deficit. However, the loss narrowed by 4.6 billion won compared to the previous quarter. Gmarket, which is establishing a joint venture with Aliexpress, has not been included in consolidated results since November last year due to the changed accounting method (equity method). However, its total gross merchandise value (GMV) returned to growth after four years. The company reported that both GMV and average spend per customer in March increased by 12% and 10%, respectively, with April figures also up by 10% and 12%, indicating ongoing growth.

Observers attribute these results to Chairman Chung’s continued field management. Chairman Chung personally visited major locations such as Starfield Market Jukjeon and Traders Guwol to inspect on-site conditions, encourage execution, and accelerate the pace of innovation. The “paradigm shift” declared in his New Year’s address was proven in just one quarter, serving as a catalyst for Emart’s transformation.

Emart stated, “The innovative paradigm shift emphasized by Chairman Chung Yongjin in his New Year’s address is already producing visible results from the first quarter. Building on the growth of our existing businesses, we will accelerate new future businesses such as establishing an artificial intelligence (AI) data center.”

Previously, in his New Year’s address, Chairman Chung stressed, “The innovative decisions made by Shinsegae Group over the past two to three years have been meticulous preparations to grow once again. To soar in 2026, we need to restore the ‘Top Instinct’ befitting a leading company and establish a paradigm shift that can rewrite the rules of the market.”

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