Will Shinsegae vice chairman stop flexing on social media after losses at retailer?
Shinsegae Group Vice Chairman Chung Yong-jin, left, poses with Gigi Hadid in this Instagram photo from Feb. 1. Screenshot from Instagram
Shinsegae Group Vice Chairman Chung Yong-jin has been attracting keen attention as to whether he will quit social media as criticism has been mounting that he should spend more time managing E-Mart, the country's largest retail store chain, which lost money for the first time last year, according to industry officials and pundits, Thursday.
As the billionaire businessman, who has been known for his active social media presence, keeps posting unfiltered messages online and provoking the public, officials are questioning how long his bonafide online activities will continue while the company is clearly in desperate need of streamlining its operations.
E-Mart, hit by growing losses from its affiliate Shinsegae Engineering & Construction amid rising construction costs and a depressed real estate market, saw its revenues sink last year. The retailer, which is the largest shareholder of the construction firm with a 42.7 percent stake, reported an operating loss of 46.9 billion won ($35.12 million). Chung is the largest shareholder of E-Mart with an 18.56 percent stake.
E-Mart reported an operating loss of 46.9 billion won ($35.12 million) for 2023.
The 55-year-old's social media activity is known to be one of the most viral and active among the country's business circles. His recent posts reveal a glimpse into his personal life as they range from gourmet foods and restaurants to LEGO toys he purchased, his children, friends and pets, and himself cooking with a wok in a kitchen.
Earlier this month, he posted a photo of himself sitting in a chair and prompted readers to guess its price. It was later found to be Pacific Compagnie's Armchair Savannah, one of 30 limited editions worth 14,900 euros.
Some of his recent Instagram posts have shown him posing with globally known figures like Donald Trump Jr., Trump's son-in-law Jared Kushner, Major League baseballer Derek Jeter, American fashion model Gigi Hadid and French fashion designer Olivier Rousteing.
Although Chung may be using Instagram as his personal outlet for public communication, using harsh language and derogatory tones against potential customers of his business is improper, officials said.
The criticisms have also brought to light the fact that he once gave an offline lecture to young adults three years ago about "thinking before leaving comments on social media" amid swift technological changes.
"You're responsible for tens of thousands of employees under your watch and here you are searching for who wrote badly about yourself and spreading buzzwords on social media like a child," one of the comments said.
A retail industry official said on condition of anonymity that as a top executive of one of the country's biggest groups, Chung is responsible for giving a trustworthy image to the public.
"But his social media presence appears to be characterized by lightheartedness and a lack of discretion. He needs to get a grip on his online language," he said.
Shinsegae Group Vice Chairman Chung Yong-jin sits on Pacific Compagnie's Armchair Savannah in this Instagram photo from Feb. 1. Screenshot from Instagram
What is fueling the issue further is how Chung has responded to these criticisms.
The atmosphere between Chung and his critics became more contentious on Tuesday, when a local online news outlet released an op-ed article asking him to stop posting about his personal indulgences and connection to high-profile public figures and focus more on improving the group's retail subsidiary.
It detailed how E-Mart has long been outpaced by Coupang, the country's biggest e-commerce platform, and losing value in the country's stock market.
Chung then responded the same day by sharing the news article on his Instagram account with over 842,000 followers, saying "mind your own business," and addressed the journalist's use of a vulgar slang expression.
The episode instantly generated fresh headlines that focused on Chung's acerbic tone.
When another journalist reported on it later that day, Chung again came out unfazed. He shared the article on Instagram the next day and, mentioning the reporter by name, cheered on his journalistic effort and encouraged his followers to pay more attention to the reporter. But beneath the text, there was a derisive nuance most readers could catch.
Chung's controversial Instagram posts have drawn nearly 1,800 comments altogether in less than two days. They were divided between his supporters and critics.
When contacted by The Korea Times, a Shinsegae Group official declined to comment on the issue.