Chung Yong-jin, chairman of Shinsegae Group, will serve as CEO of the group's core affiliates E-MART and Shinsegae Property. It is a declaration to realize full responsible management as a legally registered CEO and executive director participating in the boards of companies that represent the group's present and future.
Shinsegae Group said on the 8th that Chairman Chung has been nominated as a co-CEO of E-MART and Shinsegae Property. To appoint Chung as CEO, Shinsegae Property will soon convene a board meeting to recommend him as a registered director and then proceed with the process of passing the appointment at a shareholders meeting. After that, the board will meet again to appoint Chung as a co-CEO, finalizing his appointment.
E-MART plans to finalize Chung's appointment as a co-CEO at next year's shareholders meeting after naming him during this year's regular executive reshuffle. Shinsegae Group said Chung's move to the CEO post reflects his intent to resolve pressing issues quickly and to take the helm of the group's future growth.
Chung said, "I take seriously the market's demand that I bear clear responsibility for company management," adding, "As CEO, I will be subject to evaluation by the board and shareholders going forward."
The decision also signals Chung's intent to more actively oversee the revamps of Starbucks Korea and Shinsegae Group that he pledged in the wake of Starbucks Korea's improper marketing incident. E-MART is the largest shareholder of Starbucks Korea, and the CEO of E-MART bears heavy responsibility for the composition of Starbucks Korea's board and the company's operations.
Once Chung becomes CEO of E-MART and Shinsegae Property, the number of group affiliates in which he participates as a board member will be three. Last year, Chung was appointed the inaugural chair of the board of AG Global Holdings (then Grand Opus Holding), a joint venture between Shinsegae Group and Alibaba International of China, and has been leading the recovery of Gmarket's competitiveness. In addition, taking on the role of CEO of Shinsegae Property, which will operate the group's future landmarks such as Starfield Cheongna, is a statement of vision to take responsibility for new business growth for the group.
Shinsegae Property is also the company overseeing practical processes such as securing a site for the construction of an AI data center, a plan disclosed through a memorandum of understanding (MOU) with Reflection AI of the United States in Mar. Chung personally served as a signatory to the MOU in Mar., and by taking the helm at Shinsegae Property, he will be responsible for both the future and the present of the business portfolio for growth.
Meanwhile, Shinsegae Property has nominated Lee Hyeong-cheon, former head of the development division, as a professional manager to serve as co-CEO alongside Chung. Lee has overseen projects including the construction of Starfield Cheongna. A Shinsegae Group official said, "As a professional manager, the CEO-designate Lee will handle pending issues and organizational operations to drive improvements in profitability, while Chairman Chung will oversee the establishment of mid- to long-term visions and the enhancement of corporate value, implementing an organic synergy management model."
Starbucks Korea has nominated Shin Dong-woo, head of the support division at Shinsegae Property, as its new CEO. The CEO-designate Shin previously served as head of strategic planning at Starbucks Korea and most recently was head of the support division and in charge of finance at Shinsegae Property, overseeing strategy and the company's finances.