Shinsegae International Transfers 'JAJU' to Casa for 94 Billion Won... "Focusing on Fashion and Cosmetics"

Decision Made at Board Meeting on the 28th
Aimed at Focusing on Core Businesses and Securing Investment Capacity

Shinsegae International will transfer the lifestyle brand JAJU business unit to Shinsegae Casa.

According to the Financial Supervisory Service’s electronic disclosure system on October 28, Shinsegae International held a board meeting on this day and announced its decision to transfer the entire lifestyle business unit (JAJU)-including home goods, bedding, kitchenware, and loungewear-to Shinsegae Casa, a group affiliate in charge of furniture retail. The transfer amount is 94 billion won.

Shinsegae International explained, “This decision is aimed at focusing on core businesses and securing a foundation for new business opportunities,” adding, “We will strengthen our competitiveness by securing investment capacity for our core businesses and resources for new business initiatives.” Shinsegae International plans to hold an extraordinary general meeting of shareholders on December 10 and complete the related procedures by the end of December. The effective date for the transfer is January 1 of next year.

The reason for this decision is to focus on nurturing its main business units: cosmetics and fashion. Shinsegae International plans to use the funds secured from the sale of the JAJU business unit to foster mega brands (with sales exceeding 100 billion won) in its fashion and beauty segments, and to further expand the scale of its fashion and cosmetics businesses through investments in promising companies.

Previously, Shinsegae Group implemented a regular executive reshuffle last month, replacing the heads of both the fashion and cosmetics divisions as part of its management innovation efforts. For the fashion division, Kim Deokju, who has extensive experience in the overseas luxury fashion sector, was appointed as CEO. The cosmetics division was split into two: Seo Minseong was appointed as head of Cosmetics Division 1 (covering brands such as Yeonjak and Swiss Perfection), and Lee Seungmin was named head of Cosmetics Division 2 (covering brands such as Vidivici and Amuse). The intention is to maximize competitiveness in the cosmetics sector by appointing young CEOs born in the 1980s. The head of the JAJU business unit is currently held concurrently by Kim Honggeuk, CEO of Shinsegae Casa.

However, Shinsegae International expects a slight decrease in overall business scale as revenue from the JAJU business will be excluded. As of last year, JAJU’s sales amounted to 235 billion won, accounting for 18% of total sales.