What: Shinsegae is looking for a quantum leap by renewing the grip of the owning family

Why it is important: as many IADS members know, family ownership allows to have a different approach to timing and investment capabilities when it comes to turning around a business.

Shinsegae Group, a dominant force in South Korea's retail sector, operating the largest discount and the second-largest department store chains in the country, has reported a decrease in sales for the first time in decades. This downturn reflects the challenges posed by the rise of e-commerce, particularly from the local behemoth Coupang, which saw a 20% increase in sales to USD 24 billion in 2023, and other international competitors. Despite these obstacles, Shinsegae aims to make a significant comeback by establishing innovative systems for sustainable growth and satisfying customer demands even in unfavorable market conditions. With Chung Yong-jin, recently promoted to chairman, and his mother, Lee Myung-hee, continuing as general chairwoman, Shinsegae is poised to revitalize its strategy to counteract the competitive pressures and rejuvenate its business. Final earnings figures, inclusive of sales from smaller affiliates, are anticipated in May, which will provide a clearer picture of Shinsegae's financial health and its progress in navigating the rapidly evolving retail landscape.

South Korea’s Shinsegae Group names Chung Yong-jin as chairman