Shinsegae Officially Reorganizes Its Group Structure Into Two Different Subgroups

• Despite Shinsegae Group's to officially separate into two main business operations (E-Mart vs Shinsegae), this separation has already been in place essentially in the past several years.

• Valuations remain compelling for both companies as they are trading at near historical low valuations.

• Going forward, expect more management shakeups, especially at E-Mart as the company tries to stage a major turnaround of its operations, especially in terms of profitability.