Shinsegae overhauls internal controls, creates digital and security units at Starbucks operator

Shinsegae Group on Friday announced an executive reshuffle alongside a broad organizational restructuring aimed at strengthening internal controls and sharpening the competitiveness of its core businesses. Particularly notable was the creation of new digital and information security units at SCK Company, the operator of Starbucks Korea, which was rattled earlier this year by the "Tank Day" controversy.

The reorganization establishes a digital division and an information security center at SCK Company. Starbucks Korea suffered a consumer boycott in May following the Tank Day incident, and an internal investigation found significant gaps in the reporting and review processes behind the promotion. The new units appear designed to tighten internal oversight in response.

SCK Company will also merge its existing operations division and operations support division into a single operations unit. The food and beverage development division will be expanded into a category division, absorbing merchandise and goods functions as well.

The push to strengthen internal controls and security extended across the group. E-mart and Josun Hotel & Resort elevated their information security divisions to full information security centers, while SSG.com converted its chief information security officer division into an information security center. E-mart24 created new compliance and information security center units.

The group's central management strategy office was also reinforced. The E-mart division's planning and strategy headquarters was merged into the management strategy office. The CM team under the management general division was consolidated into a management team and a management diagnosis team, and the audit team was moved under the management support general division, which will now oversee group-wide personnel and audit functions.

At E-mart, the core affiliate, a platform division and a public relations division were added under the strategic marketing headquarters. The E-store operations division was split into an SO planning division and an MSV division. SSG.com established a new business general headquarters and converted its existing headquarters structure into a business unit model, transforming the grocery headquarters and the data and infrastructure headquarters into the grocery business unit and the D/I business unit, respectively. The existing finance management and human resources divisions will be merged into a single support division.

Shinsegae, the group's department store arm, added a content development division under its merchandise headquarters. Shinsegae International reorganized into a fashion division and a cosmetics division, introducing dedicated management structures for each business. Shinsegae DF created a merchandise headquarters along with MD 1 and 2 divisions and a marketing division. Shinsegae Live Shopping split its existing merchandise 1, 2 and 3 divisions into a lifestyle division and a fashion and beauty division. W Concept Korea broke its marketing division into a content division and a growth strategy division while consolidating its fashion 1 and 2 divisions.

Shinsegae Property, which is pursuing new businesses including an AI data center and Starfield Cheongna, will place a mixed-use development division and a development support division under its development headquarters. Shinsegae Engineering & Construction consolidated its Starfield Cheongna-related operations into a single Starfield Cheongna division. Shinsegae Food expanded its B2B sales organization into two divisions and created a new food engineering and logistics division by combining its production and logistics functions.