Jung Yong-jin and Chairman Lee Myung-hee Acquire Entire E-Mart Shares

Chairman Chung secures stake using 214.1 billion KRW of personal assets
"Demonstrates sense of responsibility and confidence to the market"
Chairwoman Lee does not disclose plans to sell her 10% Shinsegae stake

Chung Yong-jin, chairman of Shinsegae Group, will purchase all 10% of Emart shares held by his mother, Lee Myung-hee, the group’s general chairwoman. This move follows swiftly after Shinsegae Group announced its affiliate separation last October.

According to the Financial Supervisory Service’s electronic disclosure system on the 10th, Emart announced that Chairman Chung will acquire 2,787,582 shares of Emart held by Chairwoman Lee through an over-the-counter transaction. The price per share is 76,800 KRW, totaling approximately 214.1 billion KRW. With this acquisition, Chairman Chung’s total shares will increase to 7,960,493 shares (28.56%).

Chairman Chung is securing his mother’s stake using his personal assets. An Emart official stated, “This stock purchase plan is a measure for Chairman Chung, as Emart’s largest shareholder, to further strengthen responsible management based on performance principles. Despite uncertain domestic and international conditions, Chairman Chung’s decision to invest personal assets and bear the burden to acquire Emart shares demonstrates his sense of responsibility and confidence in enhancing Emart’s corporate value to the market.”

Previously, at the end of last October, Shinsegae Group announced its affiliate separation plan by promoting Chung Yoo-kyung, chairman Chung’s younger sister who operates Shinsegae Department Store.

Since 2011, when Chairman Chung Yong-jin took charge of Emart and Chung Yoo-kyung took charge of the department store business, the siblings began managing the businesses separately and exchanged their Shinsegae and Emart shares. In 2020, Chairwoman Lee Myung-hee laid the foundation for affiliate separation by gifting Emart shares to Chairman Chung Yong-jin and Shinsegae shares to Chung Yoo-kyung.

Chairman Chung currently holds 18.6% of Emart shares, and Chung Yoo-kyung holds 18.6% of Shinsegae shares, while Chairwoman Lee owns 10% of shares in both companies. With Chairwoman Lee selling her Emart shares this time, the group’s affiliate separation is expected to accelerate.

However, Chairwoman Lee did not disclose any plans to sell Shinsegae shares held by Chung Yoo-kyung on this day.