Shinsegae chief sparks concern again over anti-communist remarks

Shinsegae Vice Chairman Chung Yong-jin speaks during his New Year speech via video message on Jan. 3. Courtesy of Shinsegae

By Kim Jae-heun

Concerns are growing over Shinsegae's business with China as the group's vice chairman continues to make anti-communist remarks on social media.

In November 2021 alone, Shinsegae Vice Chairman Chung Young-jin expressed his hatred toward the ideology five times. Most of his comments targeted North Korea, Chung said. But one of his recent posts sparked controversy because he linked a Chosun Ilbo article with a picture of Chinese President Xi Jinping, to which Chung said he had not noticed Xi's face and changed the photo to one of North Korean leader Kim Jong-un.

Shareholders of Shinsegae and E-mart are worried Chung's political rhetoric may lead to China's economic retaliation on the company's retail business.

“It is true that Vice Chairman Chung's posts on social media have appealed to young people a lot and he says he has freedom of expression, but he also needs to pay attention to concerns arising over owner risk,” an industry source said.

E-mart, the country's largest retailer operated by Shinsegae, pulled out completely from China in 2017, but it is still an important market for Shinsegae International, led by the vice chairman's sister Chung Yoo-kyung. The retailer's duty free business, in particular, relies heavily on Chinese shoppers, so the company's stakeholders are alarmed by the remarks.

JP Morgan CEO Jamie Dimon also made an offhand comment against the Chinese Communist Party (CCP) during his speech in Boston on Nov. 23 last year, and issued an apology to China instantly. Dimon sensed that his casual remark about the CCP could jeopardize his company's business in China.

Chung, on the other hand, seems unlikely to tone down or hide his anti-communist words. The vice chairman has been highlighting his hashtags of “defeat communism” recently, though he said it is irrelevant to China.

“My hashtags target those living above us, not China. Don't try to relate me to China. I have no interest in them. I've learned (in my childhood) that I should defeat communists who are living close to us,” Chung wrote on Instagram.

Opinions are divided on his declaration of anti-communist idea. He has been receiving support from those who are against the current government, which stands in the left and hopes to end the war peacefully through talks with North Korea. They are making comments on the vice chairman's Instagram account that they will become patrons of his business by only shopping at Shinsegae and E-mart.

At the same time, leftists say they will boycott products sold by or at Shinsegae.