The two pillars of Shinsegae Group, which declared its separation into affiliates, are Shinsegae Co., which operates department stores, and Emart, a leading supermarket company. In the first quarter of this year, Emart, led by Shinsegae Group Chairman Chung Yong-jin, reported its best performance in eight years, demonstrating a recovery, while Shinsegae Department Store, chaired by Jeong Yu-kyung, struggled with declining revenue.
According to the Financial Supervisory Service's electronic disclosure system (DART) on the 16th, Emart recorded a consolidated revenue of 7.2189 trillion won and an operating profit of 159.3 billion won in the first quarter of 2025. Compared to the same period last year, the operating profit increased by 238.2%, exceeding market expectations. Net profit also climbed 184.6% to reach 83.6 billion won. This marks the largest performance in eight years based on consolidated results and seven years based on separate results.
This rebound in performance is evaluated as a result of Chairman Chung Yong-jin's strategy of "strengthening the main business." After being promoted to chairman last year, Chung has been accelerating the growth of the warehouse-style discount store Traders and revitalizing existing Emart stores. Notably, the Magok store, which opened in February this year, ranked first in sales among nationwide Traders.
Renewals of stores such as the Starfield Market in Jukjeon, which opened last year, also led to recovery in performance. Starfield Market is a "future-oriented Emart" created through cooperation between Shinsegae Property, which operates Starfield, and Emart. While Emart manages the operation, Shinsegae Property, which has expertise in development and management, has incorporated the identity of Starfield, emphasizing experience and sensation.
In contrast, Shinsegae Co., led by Jeong Yu-kyung, reported a consolidated revenue of 1.6658 trillion won during the same period, representing a 3.8% increase compared to the same period last year; however, operating profit dropped by 18.8% to 132.3 billion won. The core department store sector also saw revenue decrease by 0.8% to 659.0 billion won and operating profit decline by 5.1% to 107.9 billion won.
Chairman Jeong has adhered to a "premium strategy" that includes attracting premium brands, VVIP exclusive marketing, and strengthening offline service competitiveness. A notable example is the "heritage renewal" of the flagship Shinsegae store. Chairman Jeong Yu-kyung is transforming the flagship store into a "luxury cultural space" by rearranging the placement of ultra-premium brands like Chanel, Hermès, and Dior, and establishing VIP lounges and art collaboration spaces. However, severe consumer sentiment contraction shows limitations in improving revenue.
In the fashion and beauty sector, including Shinsegae International, operating profits have decreased by 35% compared to the same period last year, leading to views that a change in strategy is needed for Chairman Jeong. An industry insider noted, "In a situation where consumption by high-income individuals is not what it used to be, the structural slowdown of the department store sector is complicating the defense of revenue," asserting that "a revenue-based restructuring is necessary."
The performance results for the first quarter of this year have attracted attention as the Shinsegae Group accelerates the separation of affiliates into the system under Chairman Chung Yong-jin of Emart and Chairman Jeong Yu-kyung of Shinsegae Co. Last October, the Shinsegae Group officially declared the separation of Emart and Shinsegae Co., signaling the transition from sibling management to an independent system. Chairman Chung Yong-jin purchased a 10% equity stake in Emart from his mother, Chairwoman Lee Myung-hee, in February, while Chairman Jeong Yu-kyung will receive a 10.21% equity stake in Shinsegae Co. at the end of this month.
There remains the approval process from the Fair Trade Commission before full legal independence. However, internally, assessments have surfaced that they have practically entered a "self-sustaining" system. Consequently, there is widespread speculation that both Chairman Chung Yong-jin and Chairman Jeong Yu-kyung will have no choice but to focus on the managerial performance reflected in their results moving forward.
An industry insider stated, "It is significant that Emart is showing signs of recovery in its main retail business, which had stagnated following the COVID-19 pandemic," and added, "While maintaining existing synergies is important, it is now a situation where each company's strategic differentiation must be evidenced in their results."