Igilhanho's First Organizational Restructuring... Focus on Slimming Down and Efficiency

Shinsegae International's First Organizational Restructuring
Integrating Domestic and Overseas Fashion Businesses
Independent Management for Each Cosmetic Brand
Focusing on Speed and Efficiency

[Asia Economy Reporter Lim Hye-seon] Shinsegae International, a comprehensive lifestyle culture company under Shinsegae Group, reorganized its structure into three business divisions and reassigned 20% of its total employees. This is the first organizational restructuring since the appointment of CEO Lee Gil-han (photo). The focus was on simplifying the organizational system to enhance management efficiency.

Enhancing Efficiency through Organizational Slimming

According to the distribution industry on the 19th, Shinsegae International carried out organizational restructuring and personnel changes on the 14th. The organization, which was divided into Overseas Fashion Division, Domestic Fashion Division, Cosmetic Division, and JAJU Division, was slimmed down into Fashion Division, Cosmetic Division, and JAJU Division. Department mergers and consolidations were also implemented.

Shinsegae International had four business divisions, each led by a respective representative. The Overseas Fashion Division was led by CEO Jang Jae-young, the Domestic Fashion Division by CEO Son Moon-guk, the Cosmetic Division by CEO Lee Gil-han, and the JAJU Division by CEO Lee Seok-gu. In the early part of this month’s regular executive personnel changes at Shinsegae Group, CEO Jang Jae-young and CEO Son Moon-guk stepped down, and CEO Lee Gil-han of Shinsegae International’s Cosmetic Division was appointed as the overall CEO, concurrently overseeing both domestic and overseas fashion and cosmetics business divisions.

Integration of Domestic and Overseas Fashion Businesses

After his appointment, CEO Lee initiated efficiency improvements as his first task. He has consistently emphasized to employees, "The distribution environment is rapidly changing, so we must break away from traditional work methods and embrace new challenges," adding, "We need to transform into an organization that delivers speed and efficiency." He particularly took bold steps in the Fashion Division by integrating domestic and overseas businesses into a unified structure. Teams with overlapping duties in sales, sourcing, and merchandising were merged to enable swift decision-making and efficient organizational management. As a result, Jang Sung-eun, who was one of the three heads of the Overseas Fashion Division, retired, and Shim Han-seok, head of Domestic Fashion Division 1 (Senior Managing Director), became head of Fashion Division 1, while Lee Soo-yong, head of Overseas Fashion Division 2 (Senior Managing Director), took charge of Fashion Division 2. Choi Kyung-won, formerly head of Domestic Fashion Division 2 (Senior Managing Director), moved to become head of the Design Planning Center, and Kim Beom-su, head of Overseas Fashion Division 1 (Senior Managing Director), shifted to a support role. Approximately 200 employees were reassigned during this process.

Independent Brand Management in Cosmetics

The Cosmetic Division was structured into the Global Cosmetic Division, Poare & Swiss Perfection Division, VD Vichy Division, and Roybi & Yeonjak Division, allowing independent management tailored to each brand’s identity. The IMC team, which handled imported brand marketing, and the Cosmetic E-commerce team were merged to strengthen the online business. Recently, the ‘KakaoTV Meoseon129 Shinsegae International episode’ produced by the IMC team was a huge success, positively impacting sales.

Born in 1962, CEO Lee is known as a strategist and planning expert. Since joining Shinsegae International in 2017, he has grown the company into a leading domestic cosmetics enterprise. His network and management expertise accumulated through his experience at Hotel Shilla and HDC Shilla Duty Free have been positively evaluated. The sales proportion of the Cosmetic Division increased from 5.7% in 2017 to 24.8% last year. Ninety-two percent of Shinsegae International’s profits come from the Cosmetic Division. Shortly after joining, CEO Lee also served as head of the Global 2 Headquarters, overseeing women’s wear and lifestyle brand businesses.

An industry insider said, "Under the strong leadership of CEO Lee Gil-han, many changes are expected at Shinsegae International," adding, "After reorganizing the structure, the company is likely to strengthen its e-commerce business in line with the online era and focus on discovering new businesses."