CJ Group Chairman Lee Jay-hyun. (Photo: CJ Group)

CJ Cheiljedang, established in 1953, is the mother company of CJ Group. CJ Cheiljedang was merely a food company specializing in domestic cuisine before it was spun off from Samsung Group in the 1990s. But under the stewardship of CJ Group Chairman Lee Jay-hyun’s determination to explore new industries, CJ Cheiljedang has aggressively ventured into cinema, broadcasting, media, music (CJ E&M), multiplex (CJ CGV), home shopping (CJ O Shopping), and logistics (CJ Logistics). Thanks to its early investments, CJ Group has an international life and culture business portfolio that is leading the spread of hallyu (the Korean Wave) around the world. The group has seen sales jump 20 times and about 40,000 new jobs be created over the past 20 years. Chairman Lee now sees it as his mission to give the sagging Korean economy a shot in the arm. 

CJ Group has four main business units ―food and food services (CJ Cheiljedang, CJ Foodville, and CJ Freshway); biotechnology (CJ Cheiljedang and Cj Healthcare); new logistics (CJ Logistics, CJ O Shopping, and CJ OliveNetworks); and culture (CJ E&M, CJ CGV, and CJ Hellovision).

Attracting attention from the outside is the group’s cultural business, which accounts for some 15 percent of the group’s total sales, but contributes to improving its image in Korea and abroad. 

Chairman Lee ventured into the culture business when he invested $300 million into DreamWorks in 1995, inaugurating the multimedia business division. The company acquired a music network, now Mnet, in 1997. The following year, CGV Gangbyeon, the nation’s first multiplex, was opened, and the group acquired Yangcheon Broadcasting, the predecessor of CJ Hellovision.

On the surface, CJ’s culture business appeared to be cruising along, but the business has hit some bumps along the way. The group had some internal opposition that was opposed to spending big on the culture business, which was unusual for the group at the time. After all, the $300 million accounted for 23 percent of the group’s total assets.

CJ Cheiljedang’s costs for the construction of the CGV Gangbyeon snowballed in the wake of the impact of the 1998 Asian financial crisis. Conglomerates, including Samsung, Daewoo, and SK, which ventured into the cinema industry, gave up on it altogether. Despite the hardships, CJ has maintained its investment strategy, because Chairman Lee’s conviction rests on the reorganization of the culture business as a future growth engine for both Korea and the group. 

The group’s strategies have paid off over the past 20 years. CJ is benefitting from the empowerment of the K-brand, boosted by the globalization of hallyu. CJ, which has entered four business arenas in China and Vietnam, is accelerating efforts to strengthen its presence in the Southeast Asian content market. 

CJ Group Strives to Contribute to National Economy 

CJ Chairman Lee Jay-hyun made an official appearance at a group event for the first time in four years. He said his group will contribute to the development of the national economy by securing future growth engines, citing it as the group’s foremost task. 

Chairman Lee participated in a ceremony to open the CJ Blossom Park, which coincided with the ONLYONE Conference at Gwangjyo, Suwon, Gyeonggi-do, on May 17. Among about 300 people on hand at the event were CJ Chairman Lee, CJ Corp. Vice Chairman Lee Chae-wook, CJ Jeiljedang Vice Chairman Kim Chul-ha, and CEOs of the group’s subsidiaries.

Making his first public appearance since May 2013, which also came at the ONLYONE Conference, Chairman Lee expressed regrets over his failure to tend to management and extended appreciation to executives and staff members.

“At a critical juncture when I should have spearheaded group management to make a leap forward since declaring a ‘2nd take-off’ in 2011, I had vacated my position, which led to a failure to secure future growth engines and sagging global fortunes, and I feel it painful and responsible,” he said. 

Lee went on to say that he will devote himself to tending to his managerial responsibilities. “I’ll endeavor to secure future growth engines, the group’s foremost task, and put unfinished business on the right track. To this end, I will not spare efforts and support,” he said.