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Shinsegae Group Chairman Chung Yong-jin (left) and Shinsegae Chair Chung Yu-kyung (Shinsegae Group) |
South Korean retail giant Shinsegae Group on Wednesday announced a structural revamp dividing its flagship retail business into two companies, E-Mart and Shinsegae Department Store, making official the sibling leadership that for years has formed part of the founding family’s succession plan.
In an executive reshuffle, Chung Yu-kyung, president and younger daughter of Chairwoman Lee Myung-hee, was promoted to chair to lead the department store business Shinsegae Inc. Her elder brother Chung Yong-jin, was promoted to chair in March and will be responsible for the E-mart supermarket chain and its affiliates.
Since separating from Samsung Group in 1997, Shinsegae has evolved into a retail empire with more than 71 trillion won ($52 billion) in annual sales. More than 70 percent of the sales come from E-Mart businesses.
As of today, Yong-jin and Yu-kyung each hold a 18.56 percent stake in E-Mart and Shinsegae, the holding unit, respectively, as the largest shareholders. Their mother holds a 10 percent stake in both companies.
Lee, the Shinsegae matriarch and youngest daughter of late Samsung Group founder Lee Byung-chull, has steadily strengthened the siblings' leadership through stock transfers and exchanges since 2011.
Shinsegae Group has been preparing for this separation since 2019 by setting up the two holding units for the two business divisions based on their respective robust growth in sales.
"The group has been carefully preparing a balanced division of resources and personnel, equally split between the two leaders, for decades," a Shinsegae official said. "While there may not be immediate changes in management direction, as each has been leading their division, there’s an optimistic view in general that the two core sectors will continue to build on their strengths more effectively from now on."
The group underscored its commitment to a "reward-and-punishment" approach, focusing on promoting talent based on merit to fuel further growth. This reshuffle is particularly significant, as it represents the first personnel change since Chung Yong-jin’s appointment to the chair position in March.
Since Chung’s inauguration, Shinsegae has been enhancing profitability by reinforcing its core competitiveness through an emergency management system. This strategy will continue into 2025, with plans to place key talent in strategic roles to drive growth.
Rare female chaebol leader
Chung Yu-kyung's ascension to chairmanship is a rare case among female scions of chaebol families here, and the first among those born after 1970.
She is following in her mother’s footsteps. Lee who joined Shinsegae Department Store in 1979 became the chairperson in 1998, becoming the first female leader from Samsung’s founding family. Other female executives include CJ Group Vice Chair Miky Lee, Hotel Shilla CEO and President Lee Boo-jin.
Chung Yu-kyung, born in 1972, graduated from Seoul Arts High School and initially enrolled in the Visual Design program at Ewha Womans University before studying abroad in the United States. She graduated from the Rhode Island School of Design with a degree in graphic design.
She joined Shinsegae's Chosun Hotel in 1996 as an executive director and moved to Shinsegae as vice president in 2009, later becoming president in 2015.
With her design background, she has been recognized for her significant contributions in store design and the fashion sector in particular. Through Shinsegae International, she played a key role in importing renowned global brands such as Giorgio Armani, Coach and Dolce & Gabbana, and also launched Shinsegae's lifestyle brand, Jaju.
Chung has been referred to as a rather low-profile leader, alongside her mother. This contrasts sharply with her brother, Yong-jin, who is known for his active public presence on social media.
While she has typically entrusted management and external activities to professional executives and focused on setting the overall direction, attention is now turning to whether she will increase her external visibility following her promotion.
