Seoul: Shinsegae Group announced Monday that Chairman Chung Yong-jin will become the head of E-Mart and its property-developing subsidiary, marking a significant development in the leadership of the company. This decision highlights Chung's commitment to overseeing Starbucks Korea following its recent controversial marketing campaign.
According to Yonhap News Agency, Starbucks Korea, operated by E-Mart, launched an online "Tank Day" promotion on the anniversary of the May 18 Gwangju uprising last month. The event was swiftly suspended due to widespread public criticism for evoking memories of the brutal military crackdown on pro-democracy protestors in 1980. This incident has prompted Shinsegae to take decisive action in its leadership structure.
Shinsegae announced that E-Mart plans to appoint Chung as the discount retailer's chief executive officer (CEO) in its annual executive reshuffle this year, with a formal appointment scheduled for a shareholders meeting next year. Chung's involvement in leadership will extend to Shinsegae Property, the group's real estate developing subsidiary, where he will be named co-CEO. The company plans to recommend Chung as a registered director of the firm in an upcoming board meeting.
Chung's return to E-Mart and Shinsegae comes 13 years after he resigned from his position as a registered director in 2013. Shinsegae emphasized that this move reflects Chung's dedication to overseeing reforms at Starbucks Korea and the broader Shinsegae Group, especially in light of the recent marketing misstep at the coffee chain.
E-Mart holds a significant stake in Starbucks Korea, with a 67.5 percent share in the brand, further underscoring the importance of Chung's new role in ensuring the smooth operation and reputation management of the coffee chain.