(C) Chung Yong-jin - KED Global

SEOUL, November 12, 2025 - Shinsegae Group Chairman Chung Yong-jin has made a highly anticipated return as a registered director after a 12-year absence, taking on the role of inaugural chairman of Grand Opus Holdings, a new joint venture (JV) between Shinsegae Group and China's Alibaba International. This move signals Chung's commitment to "responsible management" and puts him directly at the forefront of the group’s strategy to revitalize its e-commerce business.

Chung's appointment as a registered director, or deunggi-imwon in Korean, was finalized at a recent board meeting for the JV. He had previously stepped down from registered directorships at Shinsegae and E-mart in March 2013, managing the group for over a decade as an unregistered executive (mi-deunggi-imwon).

The practice of corporate chiefs, including Chung and Samsung's Lee Jae-yong, operating as unregistered executives has long been noted. This status allows them to set their own salaries without shareholder resolution and provides a shield from corporate civil and criminal liabilities. However, rising public pressure has called for major executives to assume registered directorships to ensure they are held accountable for the firm's performance and legal risks. While compensation for unregistered executives was once private, a 2016 law change eventually led to the disclosure of top executives' salaries in 2018.

By taking a registered position in the JV, Chairman Chung is demonstrating his personal commitment to the success of the new venture, which is crucial for the future of Gmarket. Gmarket, which is part of the new JV structure, has been a major area of concern for the group, having fallen behind rivals like Coupang and Naver. The e-commerce platform's struggles were highlighted by its disappointing performance in the third quarter of this year, recording a 17.1% decline in revenue to 187.1 billion won and a substantial operating loss of 24.4 billion won.

Shinsegae Group views Chung's direct involvement as a clear statement of intent. A group official stated, "Chairman Chung's registration as a director is a reflection of his 'responsible management' commitment to lead Gmarket's resurgence, leveraging the collaboration with Alibaba Group."

The five-member Grand Opus Holdings board includes key figures from both sides, such as Gmarket CEO Jang Seung-hwan, AliExpress Korea CEO Ray Zhang, and James Dong, President of AIDC International Marketplace. The participation of top brass from both Shinsegae and Alibaba International underscores the companies' dedication to a tight collaborative strategy to ensure the venture achieves success in the highly competitive South Korean e-commerce market. The industry is now watching closely to see how Chung Yong-jin's hands-on leadership will steer Gmarket back toward profitability and relevance.