CJ shuffles leadership to entrust logistics chief with reviving food business

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CJ shuffles leadership to entrust logistics chief with reviving food business

Published: 16 Feb. 2024, 16:28

SEO JI-EUN
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CJ CheilJedang CEO Kang Sin-ho [CJ GROUP]

CJ Group, a Korean conglomerate, appointed new leaders for its key subsidiaries, CJ CheilJedang and CJ Logistics, on Friday.

The reshuffle, typically made at the end of the year, comes after an unusually prolonged period. The delay is believed to stem from a lower-than-expected performance and an extended search for suitable candidates for its recently established midterm business plan, which spans until the year 2026.

The newly appointed CEOs will start their roles on Feb. 19.

Kang Sin-ho, the current CEO of CJ Logistics, has been appointed as the new CEO of the food company CJ CheilJedang, alongside his promotion to vice chairman, marking his return to CJ CheilJedang after a three-year absence.

Kang, who has been with CJ Group since 1988, led notable transformations during his tenure as CEO of CJ Logistics, resulting in the company's record-breaking operating profit of 480.2 billion won ($360 million) in 2023. Previously, Kang served as CEO of CJ CheilJedang for a year.

CJ Logistics CEO Shin Young-soo [CJ GROUP]

Meanwhile, Shin Young-soo, currently heading CJ Logistics' domestic business division, will assume the role of CEO at CJ Logistics. Shin's achievements include pioneering business models in the parcel and e-commerce sectors — such as the introduction of a new delivery brand called 'O-NE', integrating guaranteed delivery services such as next-day, early morning, same-day, and Sunday deliveries. Under Shin's leadership, the domestic business division of CJ Logistics achieved higher revenue and profits than the previous year.

The retail-to-entertainment conglomerate's reshuffle was within a limited scope, as other affiliates, including CJ Freshway, CJ OliveYoung, CJ Foodville, CJ ENM, and CJ CGV, retained their respective heads.

Despite CJ CheilJedang's consecutive years of record-breaking performance since 2021, the company faced a 22.4 percent decline in operating profit to 1.3 trillion won, with revenue decreasing by 3.5 percent to 29.2 trillion won last year, attributed to subdued consumer sentiment amid economic challenges and rising raw material costs.

Conversely, CJ Logistics, the country’s largest logistics firm, achieved its highest-ever operating profit last year at 480.2 billion won, a 17 percent increase, attributed to improved profitability in its core parcel business, while revenue dipped 3 percent on-year at 11.8 trillion won.

BY SEO JI-EUN [[email protected]]