HDSG bolsters brotherly leadership with new chairman

Hyundai Department Store headquarters building. (Hyundai Department Store)

South Korea’s Hyundai Department Store Group (HDSG) promoted Hyundai Home Shopping’s Vice Chairman Chung Kyo-sun to chairman, while he retains his role as vice chairman of the group. The promotion signals a commitment to “brotherly management,” as Chung continues to work alongside his elder brother, HDSG Chairnan Chung Ji-sun. The group announced the executive changes, including several senior leadership promotions, on Thursday.

Chung Kyo-sun, who first took on the role of Hyundai Home Shopping CEO in 2009 and was promoted to Vice Chairman in 2012, steps into the chairman role after a 14-year tenure. As the second son of HDSG Honorary Chairman Chung Mong-keun, he will continue to support his brother Chung Ji-sun in managing the group under a unified holding company structure.

The group emphasized that the promotion is aimed at bolstering responsible management and driving long-term growth strategies, particularly amid the home shopping industry’s ongoing difficulties. Rising broadcasting fees and shifts in consumer trends toward mobile platforms have eroded profitability for home shopping businesses. Hyundai Home Shopping reported sales of 2.06 trillion won ($1.49 billion) and operating profits of 60 billion won in 2023, down 1.7 percent and 45.3 percent respectively, from the previous year.

Chung is expected to focus on enhancing existing business strengths while also securing new growth opportunities. “With his 16 years of leadership experience, Chung brings both expertise and a strong leadership foundation to drive the group’s growth,” a group official said

The group’s leadership under the two brothers has become more formalized since November 2023, with the establishment of Hyundai GF Holdings, a pure holding company overseeing 25 subsidiaries within HDSG. The holding company’s assets are valued at about 22 trillion won, ranking it as Korea’s 24th-largest conglomerate according to the Fair Trade Commission’s 2024 corporate disclosures. This leadership continuity reflects the group’s goal of maintaining stability while pursuing future growth.

In addition to Chung’s promotion, Hyundai Department Store Group announced a few other executive changes, while keeping the heads of major subsidiaries in their roles. Notable shifts include the appointment of Park Jang-seo, a 33-year veteran of the duty-free business, as the new CEO of Hyundai Duty Free.