CJ chairman tells managers to globalize or perish

Industry

Published: 28 Oct. 2022, 15:00 Updated: 28 Oct. 2022, 18:27

CJ chairman tells managers to globalize or perish

CJ Group chairman Lee Jay-hyun attends a meeting of CEOs of CJ companies on Thursday. [CJ GROUP]

The chairman of the CJ Group, Lee Jay-hyun, encouraged his top managers to expand globally to survive.

“The years 2023 to 2025 are very important, and will determine whether a company can become a major global player, or stagnate while only focusing on the local market,” Lee told CJ company CEOs at a meeting Thursday. “Our CEOs should show determination, come up with strategies to achieve technological advancements and innovation, and put those plans into action starting next year.”

Lee told his CEOs to achieve growth in four sectors: culture, platform businesses, wellness and sustainability. Last November, those sectors were named the four new growth engines for the CJ Group, and companies pledged to invest a combined 10 trillion won ($7.05 billion) by the end of 2023. For platforms, Lee was referring to streaming service Tving and developing CJ Olive Young and CJ ENM’s home shopping businesses into a broader lifestyle service.

“We reported record quarterly revenue of 10 trillion won in the second quarter, but it is too early to say our businesses in the four growth engines are in full swing,” said Lee. “We still need new business plans that will help us achieve an upper hand in technology and innovation.”

CJ Group companies reported total revenue of 10.3 trillion won in the second quarter, a record high and up 23.7 percent on year.

At the meeting, each company reported how much progress it had made in expanding business in the four sectors.

CJ CheilJedang acquired a 75.82 percent stake in Batavia Biosciences for 195.3 million euros last November. In January, CJ ENM acquired an 80 percent stake in Endeavor Content, a California-based production company, for $785 million. In May, CJ Olive Networks invested 13.1 billion won in a 14.2 percent stake of bemyfriends, a local start-up running channels that allow celebrities to generate revenue by creating content. CJ Corporation also invested 9.3 billion won in the company for a 10 percent stake.

BY LEE TAE-HEE [lee.taehee2@joongang.co.kr]