'Full accountability management' with registered executive CEO participation; chairman to personally lead urgent issues and future business
Shinsegae Group Chairman Chung Yong-jin will take on the role of chief executive officer at both E-mart and Shinsegae Property, the group announced Tuesday. Shin Dong-woo, head of Shinsegae Property's support division, has been tapped as the new CEO of Starbucks Korea.
Chung was first designated as co-CEO of Shinsegae Property. The group said the move represents "a declaration to realize full accountability management as a legally registered executive CEO participating in the boards of companies that define the group's present and future."
Shinsegae Property plans to convene a board meeting to formally appoint Chung as CEO. The process involves recommending him as a registered director, followed by a shareholder vote to approve the appointment. At E-mart, Chung will be designated co-CEO during this year's regular executive reshuffle, with final confirmation expected at next year's shareholder meeting.
Shinsegae said Chung's decision to assume the CEO role reflects his determination to swiftly resolve pressing issues and personally lead the group's future growth. "I take seriously the market's demand that I bear clear responsibility for the management of the company," Chung said. "Going forward, I will be accountable to the board and shareholders as CEO."
The decision also signals a more hands-on approach to the group overhaul Chung pledged following the Starbucks marketing controversy. E-mart is Starbucks Korea's largest shareholder, and its CEO carries significant responsibility for the composition of Starbucks Korea's board and the company's operations.
With Chung joining as CEO, the number of Shinsegae Group affiliates on whose boards he sits will rise to three, including AG Global Holdings — a joint venture between Shinsegae Group and Alibaba International established last year.
Shinsegae Property is also the company overseeing the practical groundwork — including site acquisition — for an AI data center project announced through a memorandum of understanding with US-based Reflection AI in March. Having personally signed that MOU in March, Chung will now take direct charge of the business portfolio driving the group's growth by leading Shinsegae Property.
Alongside Chung, Shinsegae Property has designated Lee Hyeong-cheon, former head of the development division, as professional co-CEO. Lee will lead immediate projects including the construction of Starfield Cheongna and work alongside Chung on major initiatives.
Starbucks Korea has designated Shin Dong-woo, head of Shinsegae Property's support division, as its new CEO. Shin will focus on strengthening Starbucks Korea's operational systems and internal controls, while making it his top priority to draw up a reform plan aimed at rebuilding trust through genuine communication with partners and customers.
korean@heraldcorp.com
