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CJ Group

South Korean conglomerate holding company From Wikipedia, the free encyclopedia

CJ Group
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CJ Corporation (Korean: CJ 주식회사), doing business as CJ Group (Korean: CJ그룹) or simply CJ, is a South Korean conglomerate holding company, operating internationally. It is one of the largest chaebol headquartered in Seoul, South Korea. It comprises numerous businesses in various industries of Food & Food Service, Bio, Logistics & Retail, Entertainment & Media.[2] CJ Group was the first manufacturing business of Samsung.[3]

Quick Facts Trade name, Formerly ...

CJ comes from 'CheilJedang' (제일 제당), which literally translates to "first sugar manufacture", the industry where it originally started.

Notable CJ affiliates include CJ CheilJedang (Food & Food Service), CJ Logistics (Logistics), CJ Olive Young (Health & Beauty Stores), CJ ENM (Entertainment & Media), and CJ CGV (Cinema Chain). The group is chaired by Lee Jay-hyun, eldest grandson of Samsung's founder.

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History

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1955 to 1970

CJ was founded as 'CheilJedang Co., Ltd.' in August 1953[4] as a sugar and flour manufacturer and was originally part of Samsung Group, as its first manufacturing business. In 1958, it opened the first flour mill in South Korea[5] and in 1962, started exporting sugar to Okinawa, Japan. In 1965, CheilJedang's sugar business was branded as 'Beksul'.[6][7] The company entered into the seasoning market in 1963 with Mipoong, competing against Miwon, the then-best-seller by Daesang.[6]

1971 to 1990

In the 1970s, CJ continued its growth as a Food & Food Service company.[2] In 1973 CJ entered into the feed business, launching 'Pungnyeon Feed'.[7] In 1975, CJ developed mass-production techniques for "Dashida", a seasoning product, as well as technology for the mass-production of nucleic acids for the first time in South Korea in 1977, launching first market its first nucleic acid seasoning, "AIMEE".[8] In 1979, the company was renamed 'CheilJedang Corp.' and started producing cooking oil under Beksul.[7]

In the 1980s, CJ expanded to processed food items such as beverages and frozen foods, and entered the bio business[4] based on new advanced technologies.[9] In 1984, CJ established Eugene Tech International, a local subsidiary, in New Jersey, U.S. as a joint venture project.[6] In 1986 CJ's Biotechnology & Pharmaceutics division succeeded in becoming the third in the world to develop Alpha-interferon, an anticancer medicine, as well as launching 'Hepaccine-B', a hepatitis vaccine.[7] It entered the frozen food industry and launched its beverage business in 1987.[7] With the establishment of CheilJedang Indonesia in 1988, the construction of a MSG plant in 1990, and a Lysine plant in 1991,[8] CJ started reaching markets outside South Korea.

1991 to 2001

In the 1990s, CJ went through periods of conversion and growth as it transitioned into the area of life and culture from focusing on the food and bio industry.[7] However, it continued to develop new food products such as 'Condition', a supplemental drink that alleviates hangover symptoms, in 1992 and 'Hetbahn', an aseptic packaged rice, in 1996.[7] In July 1993, CheilJedang spun off from Samsung and gained independent management, changing into a life and culture group by entering into the food service and entertainment industries. In 1996 it became 'CheilJedang Group' and completed its official separation from Samsung Group in February 1997.[9]

Since then, CJ has entered into the fields of media, entertainment, finance and information & communication businesses mainly through M&As of companies such as Mnet, a music cable channel, and Cheil Investment & Securities in 1997, and establishments of new affiliates such as Cheil Golden Village (currently CGV) in 1996, Dreamline (which was sold off in 2001),[10] jointly with Korea Expressway in 1997, CJ GLS (currently CJ Logistics)[11] in 1998, CJ O Shopping, CJ Europe and CJ FD (standing for food distribution) in 1999. In addition, CJ opened VIPS, a premium steak & salad bar, in 1997, and launched South Korea's first multiplex theater, CGV, in 1998.[7]

2003 to present

In October 2002, CJ Group was launched and the official name of the company changed to 'CJ Co., Ltd'. In September 2007, CJ Co., Ltd again spun off as a business holding company renaming to 'CJ CheilJedang Co., Ltd' and CJ Group became a holding company for a number of food and entertainment-related affiliates based in South Korea. It consists of four main core businesses: Food & Food Service, Bio, Logistics & Retail, Entertainment & Media.[2]

Korean billionaire Lee Jay-Hyun has been chairman of CJ Group since March 2002.[12] His older sister Lee Mi-kyoung is the vice chairman of the company.[13]

In 2010, CJ Media, CJ Entertainment, Mnet media, On-Media and CJ Internet merged to form O Media Holdings, which became CJ E&M in March 2011. Since then, CJ E&M has been highly influential in its contribution to Korean pop culture and the "Korean Wave" (Korean: Hallyu), a phenomenon of the spread of Korean culture, through the creation of successful TV programs such as "Superstar K", "Respond 1997", and films such as "Masquerade" and 2020 Academy Awards winner "Parasite."[9][14]

Since introducing the first multiplex theaters, CGV, in 1998 to South Korea, the company has been developing what it calls "cultureplex", a space where eateries, performance halls, shops and multiplex theaters come together to provide a more rich cultural experience to consumers, CGV Cheongdam Cine City, which opened in 2011 being an example.[6]

In July 2018, CJ E&M and CJ O Shopping merged into new company CJ ENM (CJ Entertainment and Merchandising).[15][16]

In August 2018, CJ CheilJedang acquired Kahiki Foods, an American food frozen food company based in Columbus, Ohio, and in 2019, it acquired an American frozen food company Schwan's.[8]

Global expansion

CJ Group has been widely recognized as a key contributor to the global Korean Wave (Hallyu), expanding the reach of K-food, K-content, and K-beauty across major international markets including the US, Japan, Europe, and China.[17]

Food & Food Service

Taking Korean food abroad, CJ Foodville has launched bakeries and restaurants globally. Starting with opening a TOUS les JOURS store, a bakery chain, in Los Angeles in 2004, CJ has launched the chain also in China and Vietnam, where double-digit sales growth is maintained.[6] The first TOUS Les JOURS in Ho Chi Minh, Vietnam, opened in 2007,[18] and in December 2012, the 20th and 21st TOUS les JOURS opened in New Jersey and New York.[19] Also brands of Foodville, VIPS (premium steak & salad bar) and A Twosome Place (premium dessert cafe) have opened stores in China[20] and Vietnam as well as other countries in Asia.[6]

Bio

In 2012, the construction of the $400 million nucleic acid factory in Shenyang, China was completed and will start producing animal feeds such as lysine and threonine and nucleotides in 2013.[9] CJ also constructed a lysine plant in Fort Dodge, Iowa in 2013.[8]

Logistics & Retail

CJ O Shopping, CJ's cable home shopping channel, entered into China in 2004, India in 2009, Japan and Vietnam in 2011, Thailand and Turkey in 2012, the Philippines (together with ABS-CBN Corporation) in 2013[6][21] and Mexico (together with Televisa) in 2015.[22] CJ Logistics is the logistics part of the company that handles its international affiliates.[6] CJ has exported its logistics system to India in 2011,[23] Vietnam in 2011, and Thailand in 2009.[24] As of 2025, CJ Logistics operates in 288 cities across 46 countries worldwide. [25]

Entertainment & Media

CJ ENM leads the Korean Wave with its K-pop content business. "Mnet Asian Music Awards" was held in Macau in 2010, Singapore in 2011 and in Hong Kong in 2012 and 2013, attracting more than 1 billion viewers worldwide.[6]

Controversies

Family feud

Although spun off from Samsung in 1993, CJ is still related to Samsung through family ties. The CEO of Samsung, Lee Kun-hee, is the younger brother of Lee Maeng-hee, the former president of CJ. The family came to the center of the media spotlight when Lee Maeng-hee and sister Lee Sook-hee filed civil suits against Lee Kun-hee, claiming that Lee Kun-hee had illegally acquired his inheritance by concealing parts of their father's, Lee Byeong-chul, assets.[26] As a remedy, they asked for shares of Samsung Life Insurance, which controls Samsung Electronics.[26]

Since then, the feud was highly publicized as the brothers were quoted in attacking each other through the media, and intensified after it was found out that a Samsung employee had tailed Lee Jay-hyun,[when?] the chairman of CJ group.[27]

In January 2013, the court ruled against Lee Maeng-hee on the basis that there was not enough evidence to prove that the dividends and proceeds of Samsung was part of the inheritance.[28]

Conviction of chairman

Company chairman Lee Jay-hyun was arrested in 2013 and convicted in 2014 of tax evasion and embezzlement. He was released from prison in August 2016 in an annual presidential pardon.[29]

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Acquisitions

  • 1962 Wonhyeong Industrial CO[7]
  • 1968 Mipung Industrial CO[7]
  • 1971 Dongyang Jedang[7]
  • 1975 Yongin hog farm[7]
  • 1985 Dongryp Industrial Corp
  • 1997 Mnet, Cheil Investment & Securities[7]
  • 2000 39 Shopping[7]
  • 2004 CJ Consortium,[7] Shin Dong Bang Corp.,[7] CJ Internet,[7] Planers[7] (now CJ Internet), Hanil Pharmaceuticals Ind.,[7] feed plant in Turkey[30]
  • 2006 Accord Express (Singaporean logistics company)[31]
  • 2007 Pioneer Trading, Inc., an American food manufacturing company
  • 2009 Onmedia[32]
  • 2011 Korea Express[33]
  • 2017 CJ Darcl Logistics Limited[7]
  • 2018 Kahiki Foods, an American frozen food company based in Columbus, Ohio
  • 2019 Schwans Company[34]
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Affiliates

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source:[2]

Food & Food Service

Bio

  • CJ CheilJedang's Bio Division
  • CJ Feed & Care
  • CJ Bioscience

Logistics & Retail

Entertainment & Media

Other language channels

  • Shop CJ India - Hindi Indian home shopping channel
  • O Shopping - Philippine home shopping channel
  • CJ Grand Shopping - Mexican home shopping channel
  • CJ Wow Shop - Malaysian home shopping channel (formerly)
  • SCJ TV Shopping (formerly SCJ Life On) - SCTV5 - Vietnamese home shopping channel [36][37]

Infrastructure

  • CJ Logistics E&C Division
  • CJ Olive Networks IT Business Division

Former Affiliates

  • CJ CheilJedang's Beverage Division - sold to Lotte Group in 2001
  • CJ Investment & Securities - sold to Hyundai Heavy Industries Group in 2008, then sold again to DGB Financial Group in 2018, now known as iM Securities[38]
  • CJ Asset Management - sold to Hyundai Heavy Industries Group in 2008, then sold again to VI AMC in 2020, now known as VI Asset Management
  • ChampVision also known as Champ TV - sold to Taekwang Group in 2011
  • KM - sold to GTV (Berry Entertainment & Media) in 2015, now known as GMTV
  • Badook TV - sold to Korea Baduk Association in 2015
  • CJ Digital Music - merged with Genie Music in 2018
  • A Twosome Place (premium dessert cafe) - sold in 2020 to Anchor Equity Partners, which sold it to The Carlyle Group after a year

See also

References

External links

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