CJ CheilJedang Sells Chinese Subsidiary 'Jisangjwi' for 300 Billion Won

Accelerating K-Food Expansion Through Selection and Focus
Expectations for Strengthened Financial Soundness

CJ CheilJedang announced on the 31st that it has sold its entire stake in its Chinese food subsidiary ‘Jixiangju (吉香居)’. This strategy aims to accelerate the scaling up of K-Food through ‘selection and concentration’ while also strengthening financial soundness.

The sale price is approximately 300 billion KRW, and the buyers are multiple Chinese institutional investors and Jixiangju’s existing second-largest shareholder. CJ CheilJedang acquired a total 60% stake in Jixiangju for about 38.5 billion KRW in two rounds in 2011 and 2016, and Jixiangju’s sales last year were approximately 209.1 billion KRW.

With this sale of its stake in Jixiangju, CJ CheilJedang plans to focus on expanding its K-Food business centered on the Bibigo brand. The company intends to expand its Global Strategic Products (GSP) business, which recorded sales of about 165 billion KRW in China last year, a 33% increase from the previous year, and also strengthen its online channels.

CJ CheilJedang has operated its Chinese food business based on two subsidiaries: Qingdao Food and Jixiangju. Qingdao Food produces and sells K-Food products including Bibigo frozen foods and Dasida seasoning, while Jixiangju handles Chinese side dishes such as Zhacai (?菜, commonly known as Jjasae) and Chinese sauces.

A CJ CheilJedang official stated, “We are expanding our food business globally centered on K-Food strategic products, and China will also strengthen its competitiveness in line with this major direction. The proceeds from the sale will mainly be used to enhance financial soundness.”

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