[News Space=Reporter seungwon lee] Regarding the promotion of Shinsegae Group CEO Jeong Yoo-kyung to chairman on October 30, the Korea CXO Research Institute (Director Oh Il-sun), a corporate analysis specialist, stated that she is the first female chairman among major domestic corporations born after 1970.

The CXO Research Institute announced in September that it had surveyed 200 major domestic conglomerates and 60 major mid-sized companies in terms of the number of chairmen born after 1970, and that there were 31 of them. All 31 chairmen surveyed were male. With the promotion of CEO Jung Yoo-kyung, born in 1972, to chairwoman, she has become the first female chairwoman born after 1970 among major domestic conglomerates.

◆ If Chairman Jeong Yu-gyeong becomes independent, it is expected to be ranked 27th in the business world

It is expected that the current Shinsegae Group will be split into a group led by Chairman Chung Yong-jin and a group controlled by Chairwoman Chung Yoo-kyung in the next 2-3 years. In this case, the Fair Trade Commission is likely to designate Chairwoman Chung Yoo-kyung as the group's leader.

As of May 2024, the existing Shinsegae Group's fair asset size is 62 trillion won, ranking 11th in the business world. If Chairman Chung Yong-jin and Chairman Chung Yoo-kyung's separation of affiliates becomes a reality, the existing group led by Chairman Chung Yong-jin will see its asset size decrease to around 40 trillion won. In this case, the business world ranking is likely to drop one level to around 12th.

Instead, the new satellite group controlled by Chairman Chung Yoo-kyung has fair assets worth about 19 trillion won. Based on the ranking of business world companies announced by the Fair Trade Commission this year, it ranks 27th. As of the first half of 2024, it was found that Chairman Chung Yoo-kyung actually controls about 18 companies through Shinsegae Co., Ltd.

◆ Interest in Chairman Jeong Yu-gyeong, unlike other cousins, whether she will rise to the position of 'CEO Chairman'

In the short term, attention is also focused on whether Chairman Chung Yoo-kyung, who is currently an unregistered executive, will become a registered executive in the future. The main issue is whether she will receive the title of “Chairman and CEO” in the future or whether she will rule the group as an unregistered executive chairman like her cousins ​​in the Samsung family, such as Samsung Electronics Chairman Lee Jae-yong, CJ Chairman Lee Jae-hyun, and Shinsegae Chairman Chung Yong-jin.

◆ If the new conglomerate becomes independent, Chairman Chung Yoo-kyung must prove her management ability

If Chairman Chung Yoo-kyung is promoted to chairman and the group is spun off as an independent group, it will continue the typical management style of a typical Korean conglomerate, with the existing Samsung and Shinsegae being spun off into a new satellite group. If it becomes independent as a new satellite group, whether it will grow further than before or go down the path of a small group or collapse will depend entirely on Chairman Chung Yoo-kyung's management ability.

This is because there are also precedents of failures in which companies have branched off into satellite groups while following in the footsteps of past founders. The collapse of Saehan Group, led by Chairman Lee Chang-hee, the second son of Chairman Lee Byung-chul, is a representative example. In addition, Hyundai Group, which followed Chairman Chung Ju-young, has become a small group that cannot even be included in the large conglomerates after Chairman Chung Mong-hun and Chairman Hyun Jeong-eun.

Therefore, if Chairman Chung Yoo-kyung takes a new path as an independent group in the future, it is expected that she will be put to the test of proving her management ability as the head of the group. Depending on Chairman Chung’s management ability, not only the management performance but also the direction of the stock price is expected to change.

CEO Oh Il-sun said, “In the case of Shinsegae Group, the process of dividing shares sequentially while Chairwoman Lee Myung-hee was still alive led to the stage of group separation.” He added, “This is a positive in that it eliminated potential conflicts between the two children in the future based on Chairwoman Lee Myung-hee’s experience observing the discord that occurred during the succession process in the business world, and minimized the risk of succession by clearly organizing traffic for group separation.”

As Chairman Lee Myung-hee, who was born in 1943 and is 81 years old this year, is already old, and both Chairman Jeong Yong-jin and Chairwoman Jeong Yu-gyeong are in their 50s with some management experience, it is presumed that the timing was right to promote Chairwoman Jeong Yu-gyeong while also revealing the big picture of the group's separation.

◆ Samsung Presidents Lee Boo-jin and Lee Seo-hyun, Deeply Concerned About Promotion Cards for the End of This Year

The CXO Research Institute predicted that Chairman Chung Yoo-kyung's promotion could also have an impact on Hotel Shilla President Lee Boo-jin and Samsung C&T President Lee Seo-hyun, who are cousins ​​within the Samsung Group.

The reason is that with the heads of the Samsung family, including Samsung, Shinsegae, and CJ Group, all holding the title of chairman, and with Chairman Chung Yoo-kyung joining the group, it cannot be ruled out that Presidents Lee Boo-jin and Lee Seo-hyun may also pull out the promotion card at some point in order to match their level.

Previously, CJ Chairman Lee Jae-hyun was first appointed as chairman, then Vice Chairman Lee Jae-yong was appointed as chairman, and then Vice Chairman Chung Yong-jin also received the title of chairman. President Lee Boo-jin and President Lee Seo-hyun are also likely to be promoted to the vice chairman level or higher, as early as the end of this year or at the latest in 1-2 years. Among cousins, Vice Chairman Lee Mi-kyung of CJ Group is currently the female vice chairman of the pan-Samsung family.

◆ Chairman Jeong Yu-gyeong, as of October 30, stock assets amount to 345.9 billion won

It has been found that the stock assets held by Chairman Chung Yoo-kyung are worth around 300 billion won. According to the Korea CX Research Institute, Chairman Chung holds 1,827,521 shares of Shinsegae Co., Ltd. and 5,404,820 shares of Shinsegae International. The stock valuation of these shares as of the 30th of this month was found to exceed 345.9 billion won.

However, it is expected that Chairman Lee Myung-hee will continue to hold onto the Shinsegae (984,518 shares) and E-Mart (2,787,582 shares) stocks and pass them on to Chairman Chung Yong-jin and Chairman Chung Yu-kyung, respectively, through donations or inheritance. It is predicted that Chairman Lee Myung-hee will likely hold onto the stocks until the end, as the stakes she holds are her last resort to exert influence over her two children.