Shinsegae, Emart announce annual personnel reshuffle, new CEO for Starbucks Korea

Son Yung-sik, left, newly promoted to president of Shinsege Inc., and Sohn Jeong-hyun, the new CEO nominee of SCK Company [SHINSEGAE GROUP]

Shinsegae and Emart companies announced their annual personnel reshuffle on Thursday, nominating a new CEO to Starbucks Korea following the recent controversy of formaldehyde-infused giveaway products.

Shinsegae Group announced Thursday that it nominated Sohn Jeong-hyun, current Shinsegae I&C CEO, as the new CEO of SCK Company, which runs Starbucks Korea. Current SCK Company CEO Song Ho-seob’s term was scheduled to last until March 2025, but will end early.

Hyung Tae-joon, current vice president of Emart, was nominated as the new CEO of Shinsegae I&C.

Shinsegae Group said formal appointments will come soon, though a date wasn't specified.

“We applied strict standards of rewarding good deeds while punishing bad deeds to the reshuffle, also focusing on enhancing the competitiveness of our business, preparing for future changes and fostering talent,” Shinsegae Group said in a statement Thursday. “We implemented a very strict performance-based approach to the reshuffle.”

Starbucks Korea was under fire after its Summer Carry Bag, a giveaway item, was found to contain formaldehyde, a carcinogen, above the legal limits for clothing. Although there are no legal limits set for bags, the company has apologized and recalled the formaldehyde-fused bags following public backlash.

At Shinsegae Inc., current CEO Son Yung-sik was promoted to be both CEO and president.

The company has been doing well, with sales from its Shinsegae Department Stores in the first half of this year rising 34 percent to 3.6 trillion won ($2.5 billion).

Shinsegae Live Shopping and Shinsegae Casa are switching CEOs. Current Shinsegae Live Shopping CEO Kim Hong-geuk was nominated as the new CEO of Shinsegae Casa, while current Shinsegae Casa CEO Choi Moon-suk was nominated as CEO of Shinsegae Live Shopping.

Shinsegae Inc. runs Shinsegae Department Stores and apparel business under Shinsegae International. Emart runs Emart discount stores, SCK Company, e-commerce platform SSG.com and Emart24 convenience stores.

BY LEE TAE-HEE [lee.taehee2@joongang.co.kr]