Yong-jin Jeong, holding a sword, is dismissed as CEO of Shinsegae Construction; Byeong-hoon Heo is appointed as new CEO.

Shinsegae (004170) Group carried out personnel reform, including dismissing the CEO of Shinsegae Construction (034300). It has been about three weeks since the promotion of Shinsegae Chairman Chung Yong-jin and the announcement of the principle of ‘new punishment for personnel management’, which focuses on regular replacement of CEOs with poor performance.

Shinsegae Group announced on the 2nd that it had dismissed Shinsegae Construction CEO Jeong Doo-young and appointed Heo Byeong-hoon, Vice President of Management Strategy Office, as its new CEO. It was also decided to dismiss the head of sales and the sales manager.

This personnel appointment is significant in that it is the first reorganization carried out at the group level following the promotion of Shinsegae Group Chairman Jeong Yong-jin.

Heo Byeong-hoon, Vice President of Management Strategy Office, who was appointed as the new CEO of Construction, was born in 1962, joined the Samsung Group in 1988, and served in the management diagnosis team of the Restructuring Headquarters, in charge of finance at Samsung C&T, and as CFO for the Americas.

In 2011, he moved to Hotel Shilla and served as the head of management support and CFO. He then joined Shinsegae Group in July 2018 and served as assistant vice president of planning in the strategy office, vice president of support, vice president of management, department store department planning and strategy division head, and strategy office finance division head. did.

As Heo has been in charge of the group’s financial management as Vice President of Management Strategy Office, he is considered the right person to restore Shinsegae Construction’s financial soundness.

An official from Shinsegae Group said, “The designation of Vice President Heo, the group’s key financial official, as the new CEO of Construction is an expression of the group’s will to take full responsibility for construction financial issues at the group level.”

Shinsegae Construction has been striving to strengthen its financial soundness by preemptively securing much more liquidity than the funds expected to arrive in the first half of the year through the recent merger and acquisition of Yeongnangho Resort, issuance of corporate bonds, and transfer of the leisure sector.

Appointee Heo plans to focus his capabilities on further improving financial stability by lowering the debt ratio through preemptive responses to potential risks and continuous securing of additional liquidity, while preparing measures to strengthen long-term business competitiveness.

Previously, Chairman Jeong Yong-jin ordered the establishment of a personnel evaluation system centered on performance and performance while reorganizing the Management Strategy Office, which serves as the group’s control tower, in November last year.

Shinsegae Group plans to regularly evaluate CEOs and executives who do not meet expected performance or whose management performance is poor based on internally prepared key performance indicators (KPIs) and conduct strict personnel management.

(Seoul = News 1)