[비즈한국] Shinsegae Group Chairman Chung Yong-jin has returned as an executive director of E-mart139480 for the first time in 13 years, while also taking on the role of CEO of subsidiary Shinsegae Property. The market observes that 'Starbay City,' the largest project by Shinsegae Property, will serve as a testing ground for Chairman Chung’s commitment to responsibility management. As this is a massive development project requiring 9.5 trillion KRW and has already faced a delay in its construction schedule, the speed of project execution and funding capability are expected to emerge as key challenges under his leadership.
Becoming an Executive Director of E-mart and Shinsegae Property… "Meaning to Take Responsibility"
On the 8th, Shinsegae Group announced that it had nominated Chairman Chung Yong-jin as co-CEO of both E-mart and Shinsegae Property. Once the procedures are finalized, Chairman Chung will return as an executive director of E-mart for the first time in 13 years and also join the board of Shinsegae Property.
A notable aspect of this appointment is that Chairman Chung will directly take the helm of Shinsegae Property. Shinsegae Property is a 100% subsidiary of E-mart that drives large-scale mixed-use development projects, such as Starfield and the Dong Seoul Terminal redevelopment. The development projects of Shinsegae Property hold a core position in the group's strategy, justifying Chairman Chung's direct involvement in management. Shinsegae Group explained that this appointment reflects "an intention to take full responsibility and lead the long-term new business initiatives currently being pursued by Shinsegae Property."
Among the projects currently being pursued by Shinsegae Property, the largest in scale is 'Starbay City.' Market observers suggest that the progress speed and achievements of Starbay City will be the main testing ground for Chairman Chung’s management capabilities.
Starbay City is a composite development project for the Hwaseong International Theme Park, located on a site of approximately 4.2 million square meters in Sin-oe-ri and Munho-ri, Namyang-eup, Hwaseong-si, Gyeonggi-do. It is a massive project with a total investment of 9.5 trillion KRW, which will feature a theme park, water park, Starfield, hotels/resorts, and a golf course. To push the project forward, Shinsegae established 'Shinsegae Hwaseong,' a joint venture between Shinsegae Property and Shinsegae E&C034300, in 2020.
Currently, Starbay City is undergoing the licensing and approval process for the tourism complex designation. After being designated as the Hwaseong International Theme Park tourism complex at the end of 2024, administrative procedures for the project began in earnest. Bizhankook’s investigation confirmed that Shinsegae submitted a tourism complex development plan to Hwaseong City in August 2025, and after reviewing it, the city applied to Gyeonggi-do for final approval at the end of January this year. Currently, consultations with relevant agencies including the Ministry of Land, Infrastructure and Transport and Gyeonggi-do, as well as environmental and traffic impact assessments, are underway.
A Hwaseong City official stated, "The approval process is ongoing since the application was submitted to Gyeonggi-do," adding, "Relevant consultations such as environmental and traffic impact assessments are being conducted concurrently." The official further explained, "Once these processes are reflected and the final development plan is approved, most of the core administrative steps required for groundbreaking will be considered complete."
Still in Licensing Stage, Groundbreaking Within the Year Practically Difficult
Although the licensing process is underway, it is unlikely to lead to groundbreaking within this year. Shinsegae had previously planned to begin construction in 2026 with an eye toward opening in 2029. However, as the development plan is expected to be approved no earlier than August or September of this year, and subsequent procedures like construction preparation and budget execution remain, it is generally considered difficult to actually break ground within the year.
Shinsegae Property stated, "The licensing for the tourism complex development plan is in progress, and we plan to begin construction after the permits are finalized." On the other hand, a Hwaseong City official mentioned, "Shinsegae currently anticipates the groundbreaking to take place around the first half of 2027."
Interest is focused on whether construction can begin this year because Starbay City has already seen a delay in its project schedule once before. According to the original plan, Shinsegae was supposed to start the first phase of construction by March 2024, but work did not begin. As a result, the Korea Water Resources Corporation (K-water) imposed a delay penalty of 12 billion KRW. This was because the agreement with K-water, the supplier of the site and a party to the business agreement, included a clause for delay penalties in the event of failure to meet construction deadlines.
In February of last year, Shinsegae Property filed a lawsuit against K-water seeking confirmation of the non-existence of debt, arguing that the agreement allowed for a deadline extension of up to three years if there were reasonable grounds, which K-water could not reject. However, the court ruled against Shinsegae Property in February of this year, and it has been confirmed that Shinsegae eventually paid the 12 billion KRW penalty to K-water.
As Starbay City is a massive development project with a total cost of 9.5 trillion KRW, the phased budget execution plan is considered a key variable that will determine the speed of the project. Because it is a mixed-use project that combines theme parks, tourism and leisure facilities, commercial facilities, and infrastructure, large-scale capital input is inevitable starting from the initial civil engineering and infrastructure phase.
Shinsegae Property has raised funds for past Starfield developments by attracting external investors. However, given the project’s characteristics, which include a theme park and leisure facilities, as well as the larger investment scale and longer recovery period, it is uncertain whether the same method will be applied here.
The scale of the budget for the first phase of construction and the specific funding method have not yet been disclosed. However, a Shinsegae Property representative stated, "Separate plans are in place for each stage of the project regarding funding. We plan to proceed according to these plans," adding, "The project is moving forward without setbacks as originally intended, and we will continue our efforts for a successful launch."