Shinsegae Becomes Largest Shareholder of 'Seubuk'... Will Jeong Yong-jin Launch Coffee and Goods?

Photo by Asia Economy DB

[Asia Economy Reporter Moon Hyewon] As Shinsegae Group becomes the largest shareholder of Starbucks Coffee Korea, attention is focused on whether so-called ‘Jung Yongjin goods’ and ‘Jung Yongjin coffee’ utilizing the Starbucks brand will be launched.

On the 28th, Shinsegae Group’s Emart announced that it will acquire an additional 17.5% stake in Starbucks Coffee Korea from the U.S. Starbucks headquarters. Upon completing the acquisition, Shinsegae Group will secure 67.5% of Starbucks Coffee Korea’s shares, becoming the largest shareholder. Shinsegae Group plans to expand and strengthen existing collaborative projects such as selling limited-edition goods linked with Starbucks Korea. Synergy effects with its affiliates are expected by leveraging Starbucks’ brand power.

Last year, Starbucks created a huge buzz by introducing the ‘Summer Ready Bag’ as an e-frequency good. There were remarkable scenes of people ordering hundreds of drinks to receive the Summer Ready Bag and lining up in front of stores every dawn to get the desired color of the bag. This year, Starbucks introduced items such as ice coolers, singing lanterns, and folding carts, and officially sold them through SSG.com. The prepared quantities sold out immediately after sales began, demonstrating their popularity. The ‘Landersbuck’ product, which added the Starbucks logo to the baseball team SSG Landers’ uniform, also sold out its limited quantity within three minutes.

Whether ‘Jung Yongjin coffee’ will be launched is also attracting public interest. Vice Chairman Jung, who brought Starbucks to Korea, has shown his affection for Starbucks by calling himself the ‘No. 1 fan in Korea’ and appearing on Starbucks Korea’s YouTube channel. Recently, Starbucks has been expanding into the food service business, leading to speculation that menus recommended by Vice Chairman Jung may appear at Starbucks or that popular Starbucks food and beverages will be sold at Shinsegae Department Store, Emart, and other outlets. An industry insider predicted, “Considering Vice Chairman Jung’s influence on social media, the synergy effect with the Starbucks brand will be considerable.”