Siblings to lead Emart and department stores in Shinsegae Group

President Chung Yoo-kyung

Chung Yong-jin and Chung Yoo-kyung, son and daughter of Shinsegae Group Chair Lee Myung-hee, will now officially head separate divisions within Shinsegae Group. With both siblings holding the title of chair, the South Korean retail conglomerate is moving forward with the separation of its Emart and department store businesses.

In the company’s executive reshuffle on Wednesday, Chung Yoo-kyung, president of Shinsegae Co., was promoted to chair of the group’s department store division. Her promotion comes nine years after her appointment as president in December 2015. Moving forward, Chung will oversee all operations within the group’s department store sector.

The sibling management structure traces back to 2011, when Lee Myung-hee divided the group into two separate companies: Emart and Shinsegae Department Store. Her son, Chung Yong-jin, was entrusted with Emart, while her daughter, Chung Yoo-kyung, took charge of the department store business.

Over the past two decades, Lee has methodically restructured the group through stock transfers and asset swaps, creating a framework that effectively divides the group’s affiliates between the two siblings.

As of now, both Chung Yong-jin and Chung Yoo-kyung are the largest shareholders in their respective divisions, each holding an 18.56 percent stake in Emart and Shinsegae Department Store, respectively. Lee Myung-hee maintains a 10 percent stake in both companies, preserving her influence over the group’s direction.

The group is restructuring itself into two primary divisions: department stores and the Emart segment, with plans to pursue independent growth paths for each. This initiative began in 2019 when Shinsegae and Emart were reorganized to function as practical holding companies, setting the stage for a smooth division of the group’s operations.

The department store division, led by Shinsegae Department Store, has expanded its market competitiveness across various sectors, including fashion, beauty, duty-free, and outlet businesses. Meanwhile, the Emart division has solidified its position as a leader in retail, encompassing operations such as Starfield shopping complexes, Starbucks stores, convenience stores, and supermarkets, targeting a wide range of consumer lifestyles.

Since becoming independent from Samsung Group in 1997, Shinsegae Group has grown into South Korea’s top retail conglomerate, with total revenue surpassing 71 trillion won ($51.3 billion) in 2023. During this time, Shinsegae Department Store has built a dominant presence in every region where it operates, while Emart has established itself as the country’s leading hypermarket chain, with over 153 locations nationwide. The group has also developed strong capabilities across key lifestyle areas, including e-commerce, fashion, beauty, duty-free, and food services.

Shinsegae’s performance continues to show resilience, with its department stores achieving record-high sales in the first half of this year. Emart has also made strides toward profitability, with first-half operating profit increasing by 51.9 billion won from last year. The company expects to restore annual profitability to 2020 levels by the end of this year.

The executive leadership change marks the first major personnel reshuffle since Chung Yong-jin took over as chair in March 2024. The reshuffle also reflects Shinsegae’s commitment to promoting talent based on merit, rewarding performance, and ensuring the right people are in place to drive sustainable growth.

In line with this strategy, the company announced that Han Chae-yang, vice president and CEO of Emart, will be promoted to president. With this promotion, Han is expected to accelerate efforts to enhance Emart’s core competitiveness and improve profitability even further.