Shinsegae chief to become co-CEO of Starbucks Korea after botched marketing

Shinsegae Group announced Monday that Chairman Chung Yong-jin will become the head of E-Mart and its property-developing subsidiary, in a show of commitment to overseeing Starbucks Korea following its controversial marketing campaign.

Operated by E-Mart, a subsidiary of Shinsegae, Starbucks Korea launched an online "Tank Day" promotion on the anniversary of the May 18 Gwangju uprising last month. The event was suspended within hours after drawing widespread public criticism for evoking painful memories of a brutal military crackdown on pro-democracy protestors in 1980.

Shinsegae said E-Mart, the group's discount retailer, plans to appoint Chung as the co-CEO in its annual executive reshuffle this year and formally appoint him to the position in a shareholders' meeting next year.

Chung will also be named co-CEO of Shinsegae Property, the real estate developing subsidiary of E-Mart, the group said. The property arm of the group is set to recommend Chung as a registered director of the firm in a board meeting soon before opening another board meeting to appoint him as the co-CEO, the group added.

Chung's title change comes 13 years after he resigned from his post as a registered director of E-Mart and Shinsegae in 2013.

Shinsegae said the move reflects Chung's commitment to oversee reforms at Starbucks Korea and Shinsegae, following the botched marketing campaign at the coffee chain.

E-Mart is the largest shareholder of Starbucks Korea, with a 67.5 percent share in the brand.

Yonhap