Jung Yong-jin: "'The Gap of One Click' Changes Consumer Patterns"... Next Year's Theme is 'ONE LESS CLICK'

Jung Yong-jin, Vice Chairman of Shinsegae, New Year's Message
"ONE LESS CLICK, ONE MORE STEP"
Management Decision-Making Focused on Profitability

Jung Yong-jin, Vice Chairman of Shinsegae Group, presented 'ONE LESS CLICK' as the key theme for next year. The idea is that focusing on the 'one click difference' can create a competitive edge over rivals. Although Jung has emphasized 'customer-centricity' in previous New Year's addresses, this year he delivered a message reflecting a sense of crisis amid deteriorating performance due to sluggish domestic demand.

In his New Year's address on the 28th, Jung said, "'The one click difference' can shake customers' hearts and bring about a typhoon that changes consumption patterns," adding, "Through 'ONE LESS CLICK' and 'ONE MORE STEP,' please eliminate small inconveniences and inefficiencies one by one, and deepen analysis and reflection at every stage of decision-making and work execution."

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

He stated, "We must completely change existing systems and ways of working," and urged, "Since 'ONE LESS CLICK' is the core of efficiency and synergy across the entire group, please make it the top priority principle in all work methods." He also said, "Corporate selfishness and unnecessary work duplication are typical targets of 'ONE LESS CLICK,'" and asked to "leave only the ultimate goals of realizing customer value and the overall profit of Shinsegae Group and eliminate everything else." This means that by re-examining all work processes under the principle of the 'one click difference' and removing inefficiencies that have been carried out as a matter of course, the group should increase its overall growth scale.

Jung emphasized, "If the work perspective must align with the 'ONE LESS CLICK' principle, then 'ONE MORE STEP' is absolutely necessary at the stages of review and execution." Through 'one more step,' the most efficient and effective answers should be found, and based on this, the gap with competitors should be widened. Jung said, "‘ONE MORE STEP’ is an essential requirement in decision-making as well," urging, "At every moment and every stage, take 'one step further' to thoroughly examine potential risks and structural problems with rigor."

Jung also stressed the need to strengthen profitability. He said, "The essence of corporate activity is to stabilize the profit structure through business performance and reinvest it to expand business areas," adding, "In 2024, profitability must be central to management decision-making." He further urged, "Through proactive and bold management diagnosis, check whether the profit base of core businesses is sufficiently solid, and judge future new business ventures with profitability as the focus."

This is reportedly the first time Jung has repeatedly called for improvements in work methods in his New Year's address. It appears to reflect his determination to completely reform the group amid adverse conditions such as high interest rates, high prices, and weakened consumer sentiment leading to poor performance. In fact, Shinsegae Group's operating profit for the third quarter this year was 209.8 billion won, down 17.3% compared to the same period last year. Sales fell 4.7% to 9.2071 trillion won, and net profit also dropped 62.6% to 81.9 billion won, heightening internal and external concerns.

Reflecting this sense of crisis, Shinsegae Group took a 'strong personnel measure' in September by replacing 4 out of 10 heads of major affiliates, including Emart and department stores. At the time, there were remarks inside and outside the group that the personnel changes were based on a principle of rewarding and punishing according to poor performance. When Jung presided over the first strategy meeting after the personnel changes last month, he also instructed to change the organization, systems, and work processing methods entirely. The group explained that Jung’s consecutive chairing of strategy meetings signified his intention to personally oversee Shinsegae Group’s change and innovation.