Shinsegae Group Chairman Chung Yong-jin speaks at a ceremony for the group's new employees, held at Shinsegae Namsan training institute in Seoul, on Feb. 24. (Shinsegae Group)
Shinsegae Group Chairman Chung Yong-jin speaks at a ceremony for the group's new employees, held at Shinsegae Namsan training institute in Seoul, on Feb. 24. (Shinsegae Group)

Shinsegae Group Chairman Chung Yong-jin marked his first anniversary in office by unveiling a two-track strategy focused on achieving "market dominance" and "business normalization," the group announced Wednesday.

The strategy aims to secure a strong competitive edge in the group's leading affiliates, including Emart and Starbucks, while restoring full operational stability in e-commerce and construction to lay a solid foundation for future growth.

“The more challenging the economic conditions and the more volatile the market, the more we must strengthen our core business competitiveness to achieve unassailable market dominance,” Chung stated in a press release.

Chung's primary focus remains on Emart, where he recently acquired a 10 percent stake from his mother, General Chairwoman Lee Myung-hee. Emart plans to open three new stores this year, with an additional three stores expected by 2027.

Starbucks, another key growth pillar, surpassed 3 trillion won ($2.3 billion) in annual sales last year, making it Shinsegae’s third-largest revenue contributor after Emart and Shinsegae Department Store. Reflecting its growing market influence, Starbucks plans to open over 100 new stores this year.

Shinsegae’s e-commerce and construction divisions, which require restructuring, will prioritize management normalization.

SSG.com, which recorded its first annual EBITDA profit last year, aims to accelerate profitability improvements and enhance logistics capabilities with CJ Logistics' nationwide network of over 700 hubs.

Meanwhile, Gmarket is forming a joint venture with Alibaba International to create synergies with the global platform. The corporate merger notification has been submitted to the Fair Trade Commission, and the joint venture will be finalized pending regulatory review and court approval for in-kind contributions.

“To navigate difficult circumstances, unconventional ideas that challenge existing norms are essential. Active collaboration with external partners can act as a catalyst to reshape market trends,” Chung said.

Following its recent delisting, Shinsegae E&C plans to streamline its decision-making process and accelerate the development of its mid-to-long-term business portfolio strategy, according to the group.

By Kim Hae-yeon (hykim@heraldcorp.com)