April 27, 2024

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[THE INVESTOR] Shinsegae announced on Oct. 31 that it will hand over four premium supermarkets -- one Star Super in Seoul and three SSG Food Markets in Seoul and Busan -- to its affiliate E-mart for 129.6 billion won (US$113.19 million) to focus on department stores and online retail business. 

E-mart already boasts reigning sales network and competitiveness as the country’s largest big box retailer and by taking on the premium supermarket business, expects to further boost its strength in the food industry in terms of both price and product quality, said the company. 

Shinsegae Department Store President Chung Yoo-kyoung (left) and her brother Shinsegae Group Vice Chairman Chung Yong-jin

Led by its head Chung Yong-jin, E-mart has expanded into high-end supermarkets with PK Market at its newly unveiled multi-use complex Starfield Hanam. It will seek to create synergy and maximize efficiency by bringing all three premium brands under one umbrella.

Shinsegae Group was the first to introduce a premium supermarket in the country when it opened a Star Super outlet at the Tower Palace apartment complex in southern Seoul in 2003. 

This further materializes the process of dividing the retail giant between Chung Yong-jin and his sister and department store President Chung Yoo-kyung, industry sources say. E-mart and shopping complexes will be handled Yonjin and department stores and duty-free stores by Yoo-kyung. 

In April, the siblings traded their entire stake in each other’s company, and now they own 9.8 percent stake in their own companies. Their mother Lee Myung-hee remains the largest stakeholder of both E-mart and Shinsegae, owning 18.2 percent stake in each.

By Hwang You-mee (glamazon@heraldcorp.com)