Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
CJ begins managerial succession
Lee Kyeong-hoo
By Park Jae-hyuk
By Park Jae-hyuk
CJ Group Chairman Lee Jay-hyun's oldest daughter came back to Korea recently to serve as marketing manager of the group's key subsidiary, according to the conglomerate Sunday.
Lee Kyeong-hoo, 33, will start working today at CJ ENM headquarters in Seoul in charge of brand strategies of the content and commerce unit, which was started Sunday through a merger between CJ E&M and CJ O Shopping.
Industry officials regard the latest appointment as part of the group's generational succession.
CJ Group seeks to develop CJ ENM into a company posting 11 trillion won ($9.8 billion) in sales in 2021, so the recent move has been regarded as the chairman's attempt to test his daughter's ability in management.
Considering the chairman's oldest son, Lee Sun-ho, 28, has worked for CJ CheilJedang, the son is expected to manage the group's food unit and holding firm, while the daughter will lead the group's media and commerce businesses.
Industry officials said the chairman allowing his older sister, CJ Vice Chairwoman Lee Mie-kyung, to manage the group's media business also supports the expectations.
Currently, the chairman's daughter and son hold less than a 1 percent share each in the group's listed companies.
However, the two are expected to acquire the holding company's shares in the future, using their shares in CJ Olive Networks. Analysts say the group's online retail unit will be listed or merged with the holding company, so the young heirs can strengthen their power.
CJ has denied the expectations, saying, “The recent appointment is irrelevant to generational succession because the chairman is still in good health.”
The company said Lee's daughter has helped the conglomerate expand its presence in the North American market.
“When she was leading CJ's marketing in the U.S., the company's dumpling brand Bibigo took the top spot in the U.S. dumpling market. She also successfully held the largest-ever KCON, the Korean culture convention and music festival,” a CJ official said.
“The newly started CJ ENM aims to be a global company, so it is important to set up its brand strategies. We regarded Lee Kyeong-hoo, who has global business experience and marketing abilities, as the right person for the job.”
As a deputy president of CJ Group's office in Los Angeles, she stayed in the United States over the past two and a half years. Her husband Jung Jhong-hwan, 37, who has also been in charge of CJ's U.S. business, will reportedly stay there.