Ahead of leadership change at CJ, 'Owner 3rd generation' Lee Kyung-hoo and Lee Sun-ho expand management roles

Possibility of Promotion to Eldest Son Executive Director
Eldest Daughter and Son-in-Law Also Likely to Be on the List
Focus on Innovation Aligned with Generational Change

(Left) Lee Jae-hyun, Chairman of CJ Group, (Right) Lee Kyung-hoo, Vice President

[Asia Economy Reporter Lim Hye-seon] CJ Group is expected to significantly expand the management roles of third-generation owners Vice Chairman Lee Kyung-hoo and Manager Lee Sun-ho in next week's regular executive appointments. In particular, in line with the 'generation change' that has been a key issue for major conglomerates such as Samsung, SK, and LG, CJ Group Chairman Lee Jae-hyun has declared his intention to create an innovative organizational culture that selects talent based on ability and will rather than seniority, so a radical personnel reshuffle is anticipated.

Management Succession Process Begins in Earnest

According to CJ Group on the 15th, eldest son Lee Sun-ho, Vice President of CJ CheilJedang, is expected to be promoted to Managing Director in this personnel appointment. Lee returned to management in January as head of CJ CheilJedang's Global Business division. The Global Business division is responsible for discovering strategic products targeting overseas markets and establishing and executing business strategies to globalize K-food. Unlike the usual practice of the CJ family not showing themselves in external activities, CJ CheilJedang publicly disclosed Lee's official overseas schedule last September. At that time, Lee attended the marketing partnership event between CJ CheilJedang's brand 'Bibigo' and the LA Lakers.

First daughter Lee Kyung-hoo, Vice President of CJ ENM (Head of Brand Strategy Office), and her husband Vice President Jung Jong-hwan (CEO of CJ America Headquarters) are also highly likely to be included in the list of promotions. The two were promoted to vice president status in 2021 and 2020 respectively, and are expected to be officially appointed as vice presidents without the provisional title through this personnel appointment. Both Lee and Jung were promoted from provisional managing director to managing director within eight months after becoming executives.

Seonho Lee, Manager at CJ CheilJedang

Like the Second Generation, the Third Generation Also Forms a Sibling Management System

The business community expects that, just as Chairman Lee Jae-hyun led the food, bio, and entertainment businesses together with Vice Chairman Lee Mi-kyung, the eldest son Lee will lead the entire group while Vice President Lee will oversee the entertainment business, establishing a sibling management system.

The succession process is also accelerating. Vice President Lee and Manager Lee hold 4.26% and 11.09% stakes respectively in CJ Olive Young. If CJ Olive Young goes public next year, the value of the shares they could secure would amount to approximately 300 billion KRW, enough to purchase more than 10% of the holding company's shares. Currently, their stakes in the holding company are only 1.19% and 2.75% respectively, totaling less than 5%. Chairman Lee Jae-hyun's stake in the holding company is 42.07%, which is expected to prevent various noises during the future corporate succession process.

Stability and Personnel Innovation Simultaneously

This personnel appointment is expected to be bolder in appointing younger executives, lowering the average executive age compared to last year (45 years old). The affiliate to watch most closely is CJ ENM, where first daughter Lee is based. It is anticipated that the young 30-something owner Lee will clearly express her own style through this appointment. It is expected that talents with global digital capabilities and expertise will be actively recruited. Heo Min-ho, CEO of CJ ENM Commerce Division (CJ OnStyle CEO), whose term ends in February next year, is reportedly retiring for personal reasons. Candidates for his successor include Vice President Kim Jin-guk (Head of HR Support Office) and Heo Min-hoe, CEO of CJ CGV. Choi Jin-hee, head of film and drama at Studio Dragon, a key player in the drama production company's growth, is also reported to be stepping down.

Since Chairman Lee Jae-hyun has reflected on his shortcomings in preparing for the future, a bold personnel move including external talent recruitment is also anticipated. In terms of securing diversity among executives, the appointment of female executives is expected to continue. Last year, eight female executives were appointed.

This content was produced with the assistance of AI translation services.