Chung Yong-jin promoted to chairman of Shinsegae Group

Shinsegae Group Vice Chairman Chung Yong-jin. [Courtesy of Shinsegae Group]

Shinsegae Group Vice Chairman Chung Yong-jin has been promoted to the position of Chairman at the South Korean retail giant on Friday.

This elevation marks a significant milestone for the 56-year-old businessman and heir after he joined the company as a director at the end of 1995.

Shinsegae Group cited the intensifying competition and diverse challenges in the retail market, emphasizing the need for strong leadership in response to evolving market dynamics. The conglomerate aims to strengthen its capabilities to lead market changes through Chung’s promotion.

“In the ever-changing market landscape, characterized by intense competition, various crisis factors, and fierce challenges, robust leadership is essential. With Chung Yong-jin’s promotion, we aim to enhance our capabilities to lead market changes,” the company said.

“In the unpredictable market environment, we have carried out this personnel change to establish an innovative system for sustainable growth, aiming to once again achieve the status of the ‘Number 1 company’ that delivers the highest customer satisfaction,” it added.

While brick-and-mortar retailers have been crippled by the Covid-19 pandemic, e-commerce giants like Coupang have been growing rapidly, posing a threat to indigenous retail giants.

Emart achieved record-breaking annual sales of 29.4 trillion won ($22.2 billion) last year, but due to significant losses incurred by subsidiary Shinsegae E&C, the company reported its first operating loss on a consolidated basis.

Emart’s separate operating profit also fell by 27.3 percent to 188 billion won compared to the previous year. Coupang surpassed Emart for the first time last year with sales of 31.8 trillion won.

Shinsegae Group acknowledges the need for innovation at a level entirely different from the past and recognizes the current environment as a critical juncture.

Chung Yong-jin, part of the third generation of the Samsung founding family, has been preparing to take the helm early, as his mother, Lee Myung-hee, Shinsegae Group Chairman, stepped back from frontline management.

Lee Myung-hee is the youngest daughter of the late Lee Byung-chull, the founder of the behemoth Samsung, the nation’s top conglomerate, and the younger sister of the late Chairman Lee Kun-hee.

Chung, a contemporary of Samsung Electronics Chairman Jay Y. Lee, graduated from Kyungbock High School and majored in economics at Brown University in the United States during his time at Seoul National University.

In 1995, at the age of 27, he joined Shinsegae as a Director of the Strategic Planning Team. Over the years, he held various positions, including Manager of the Planning Coordination Team in 1997, Executive Director of Business Support in 2000, and eventually Vice Chairman in 2006.

Chung Yong-jin and his younger sister Chung Yu-kyung each hold 18.56 percent of Emart and Shinsegae shares, while Chairman Lee Myung-hee holds 10.00 percent of shares in both Emart and Shinsegae.