SSG.com to spin off lifestyle unit, create Shinsegae Mall

SSG.com said Thursday its board of directors approved a spinoff of its lifestyle business unit. Once the split is complete, the surviving entity will operate as SSG.com, while the newly created company will be named Shinsegae Mall (tentative).

SSG.com plans to hold an extraordinary shareholder meeting in late October to approve the spinoff plan, with Dec. 1 set as the effective date for the separation.

The company said the spinoff is aimed at raising the expertise and efficiency of its commerce and lifestyle operations. It concluded that independent decision-making and management structures optimized for each platform would let it respond more flexibly and quickly to market conditions than running two platforms under a single corporate entity.

SSG.com will focus on strengthening its existing commerce business, centered on online grocery shopping. The newly established Shinsegae Mall plans to develop into a premium e-commerce platform built around fashion, beauty and lifestyle.

Business ties between the two entities will continue after the split. SSG.com's app will be linked to the Shinsegae Mall platform, allowing customers to access Shinsegae Mall's premium e-commerce products directly through the SSG.com app. Shinsegae Mall will also strengthen its own platform while expanding customer touchpoints through channel integration with SSG.com and other partners.

"We expect the spinoff to deepen the expertise of each business and allow us to respond more swiftly to market changes through independent decision-making," an SSG.com official said. "Even after the split, we will continue to maintain customer touchpoints and necessary business ties to keep strengthening our competitiveness."