Jung Yong-jin Personally Oversees "Shinsegae Group, Core Focus on Performance-Based HR and Compensation Next Year"

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Jung Yong-jin, Vice Chairman of Shinsegae Group, emphasized "thorough performance-based personnel and compensation" while consecutively presiding over the Management Strategy Office strategy meetings on the 28th.

Jung Yong-jin, Vice Chairman of Shinsegae Group [Photo by Shinsegae Group].

Vice Chairman Jung stated, "Among the roles of the Management Strategy Office, 'personnel,' including talent acquisition, holds significant influence that can determine the success or failure of each group affiliate," and emphasized, "A more cautious yet precise personnel system must be established."

Vice Chairman Jung ordered a comprehensive review and improvement of the current personnel system across the entire Shinsegae Group. He requested that all personnel and compensation be strictly based on performance, and that the evaluation indicators for performance be objective and clear KPIs (Key Performance Indicators) that all members can accept and predict.

He particularly stressed that the entire process from KPI establishment to execution must be meticulously structured, explaining that evaluations should go beyond simply comparing growth or decline from the previous year and should comprehensively consider macroeconomic trends and the business conditions of the relevant industry sector. For example, if business sales grew by 5% compared to last year but competitors in the same industry grew by an average of 20%, the evaluation should differ accordingly. Conversely, even if there was negative growth, if the organization performed relatively well amid overall economic downturn and industry stagnation, the evaluation system should be refined to recognize such performance.

Vice Chairman Jung emphasized that precise KPIs should be established by affiliate and business area, ensuring definite rewards for organizations and employees who achieve results, and holding accountable those who do not. This is essential for nurturing or recruiting excellent talent in the long term, and securing top talent is a matter critical enough to determine the future of the group.

Recently, Vice Chairman Jung has consecutively presided over Management Strategy Office meetings, delivering strong directives and signaling his intention to personally oversee changes in the Management Strategy Office and Shinsegae Group next year. Earlier, at the strategy meeting on the 20th, he strongly reprimanded the strategy office for its past working methods and ordered a complete overhaul of the organization, system, and work execution methods. He stated that for stable growth of the group, the organization operation and decision-making of the Management Strategy Office must be conducted in the most rational and clear manner, urging the formation of an organization that operates organically based on systems rather than individuals. Ultimately, the Management Strategy Office should play a role in creating a predictable management environment. He said, "Not only the Management Strategy Office but the entire group must change together," urging a strong reform across the group starting with the Management Strategy Office.

On the 17th, Shinsegae Group reorganized the existing Strategy Office into the Management Strategy Office and restructured the support headquarters and finance headquarters under the Strategy Office into the Management General and Management Support General organizations, respectively, to stably support the total performance system of affiliates. Through this reorganization, Shinsegae Group plans to strengthen the core function of the Management Strategy Office to reliably assist the decision-making of the group’s top management, developing it into a powerful organization that maximizes the management capabilities of the top executives. At the same time, by streamlining function-centered organization efficiency, practical functions will be boldly transferred to the field, and the group’s control tower function to coordinate and integrate each company’s business will be reinforced, making it an organization that leads the group’s sustainable future growth.

Following Vice Chairman Jung’s directives, the Management Strategy Office plans to implement major changes, including refining the group-wide personnel system with objective and predictable KPIs and performance-based compensation.