SSG.COM to Spin Off Lifestyle Business, Reorganizing Structure Ahead of Affiliate Separation

[Financial News] SSG.COM will spin off its lifestyle business division through a physical split and establish a new company tentatively named Shinsegae Mall. The move appears aimed at streamlining its online business structure, where operations tied to both E-Mart and Shinsegae Department Store have been mixed, as Shinsegae Group pushes ahead with a separation between the two affiliates.
SSG.COM said on the 27th that its board of directors approved the spin-off plan for the lifestyle business division. The company plans to seek approval for the split at an extraordinary shareholders' meeting in late October and proceed with the related steps, with Dec. 1 set as the effective date.
After the split, SSG.COM will remain as the surviving entity, while the new company will become Shinsegae Mall. SSG.COM will focus on strengthening its core commerce business, including grocery shopping online. Shinsegae Mall plans to evolve into a premium e-commerce platform by expanding customer experience and services centered on fashion, beauty and lifestyle.
The split comes as part of Shinsegae Group's efforts to separate its affiliates. SSG.COM has E-Mart and Shinsegae as major shareholders, and has so far operated online grocery shopping and department store products under one company and one platform. Separating the lifestyle business into a standalone entity would allow each business to operate independently in line with its characteristics and make it easier to adjust affiliate-specific business and ownership structures in the future.
However, since a physical split means existing shareholders receive shares in the new company in proportion to their current holdings, this move alone will not place Shinsegae Mall under Shinsegae Department Store's affiliate group. Analysts say it is less a direct ownership adjustment for an immediate separation and more a preparatory step to clarify the boundaries of each business and build a foundation for independent operations.
Even after the split, customer touchpoints and business links between the two platforms will remain in place. Customers will be able to purchase products through the Shinsegae Mall platform within the SSG.COM app. Shinsegae Mall plans to strengthen its own platform while connecting with various channels, including SSG.COM, to expand customer access.
An SSG.COM official said, "Through the physical split, we expect to enhance the expertise of each business and respond more quickly to market changes based on an independent decision-making system." The official added, "Even after the split, we will continue customer touchpoints and necessary business links while steadily strengthening our competitiveness."
[email protected] Lee Jeong-hwa Reporter