Who Is Kang Hee-seok, the Savior of Emart Leading Even Online?

Emart's First External CEO
Rescuer Amid Deficit Crisis
Bold Restructuring and Strategic Differentiation Policies
Integrated Online and Offline Approach and Enhanced Synergy

CEO Kang Hee-seok

[Asia Economy Reporter Cha Min-young] Kang Hee-seok, CEO of Emart (51), who was both doubted and anticipated as Emart's first externally appointed CEO, was appointed on the 15th as the head of SSG.com, the new growth engine of Shinsegae Group.

On the same day, Shinsegae Group carried out the 2021 regular executive personnel reshuffle for the Emart division, including Kang's concurrent appointment as CEO of SSG.com. The focus was on overcoming the management environment and achieving business performance. In particular, the plan is to strengthen online capabilities represented by SSG.com and enhance organizational efficiency to create online and offline synergy.

Kang Hee-seok was brought in as a savior amid Emart's crisis in an earlier-than-usual personnel reshuffle last October. At that time, Emart had just recorded a deficit (29.9 billion KRW) for the first time in its history in Q2 of the previous year. The number of stores even decreased to 141 as domestic and overseas store openings were stalled. Although Kang had long been in charge of consulting for Emart and acted as an advisor to Chung Yong-jin, Vice Chairman of Shinsegae Group, there were concerns about his lack of field experience since Emart's CEO position had traditionally been led by those with on-site experience.

However, Kang dispelled public concerns and succeeded in turning around performance this year through bold restructuring of underperforming stores and innovation. Among specialty stores, unprofitable brands such as 'Pierrot Shopping' and 'Boots' were decisively closed, while 'Electromart' and 'No Brand' were aggressively expanded. Emart posted strong results in September, raising expectations for Q3 performance. Emart's consolidated sales for Q3 are estimated at 5.7008 trillion KRW, with operating profit at 129 billion KRW. It is evaluated that Emart successfully defended its performance through strategic food-centered channel differentiation strategies pursued by discount stores, Traders, and specialty stores amid the rapid changes in COVID-19 and consumer trends. The e-commerce subsidiary SSG.com also contributed to reducing Emart's performance burden by narrowing its quarterly losses. The expansion of picking and packing (PP) centers in non-food areas within Emart stores and automation of PP centers are expected to maintain high growth. The Q3 sales growth rate is also forecasted to be high.

Born in 1969, Kang graduated from Seoul National University with a degree in law and passed the 1993 civil service exam (finance sector), beginning his public service career. From 1994 to 2005, he worked as a senior officer at the Ministry of Agriculture, Food and Rural Affairs. In 2004, he completed an MBA program at Wharton School, and from 2005, he joined Bain & Company Korea, one of the world's top three consulting firms, and was promoted to partner in the consumer goods and retail sector in 2014. During this period, he served as a consultant for Emart and became its first externally appointed CEO. This was the first time in Emart's 26-year history that an external person was appointed as CEO.