"Lee Byeong-cheol (Chairman) Inherits the Founding Vision"... The Reasons Behind CJ and Shinsegae's Bid for JoongAng Ilbo

It is difficult to discuss the background behind CJ Group and (Co.) Shinsegae joining forces with Daewoo Kium Group to acquire JoongAng Ilbo without mentioning the decisive actions of Lee Jae-hyung, Chairman of CJ Group, and Jung Yoo-kyung of Shin Se-gye (Chairman). JoongAng Ilbo is a newspaper founded by the late Lee Byung-chul, the founder of Samsung Group. This context explains why his grandsons, Lee (Chairman), and granddaughter, Jeong (Chairman), have joined hands in the acquisition bid. Although CJ Group and Shinsegae are independent from Samsung, it appears they agreed on the need to uphold the legitimacy of the media outlet established by their common founder.

CJ Group's and Shinsegae's participation in the JoongAng Ilbo acquisition is interpreted as a strategic move driven by three factors: inheritance of legitimacy, business expansion, and strengthened influence. First, CJ Group differs from other potential acquirers in that it is already an existing shareholder of JoongAng Ilbo. Through its affiliate CJ Olive Network, CJ Group holds 9.24% of JoongAng Ilbo's shares. This makes it the third-largest single shareholder, following JoongAng Holdings and Hong Suk-hyun, Chairman of JoongAng Holdings. The reason CJ Group has been cited as a leading acquisition candidate since the sale process began is due to this shareholding relationship.

For Lee (Chairman), who expanded CJ's business areas from food into logistics, entertainment, and commerce, entering newspaper management carries significance beyond simple investment. Lee (Chairman) is the eldest son of the late Lee Mang-hee, Honorary Chairman of CJ Group, who was the eldest son of founder Lee Byung-chul. As the eldest grandson of the Samsung founder, this acquisition holds symbolic weight beyond mere business expansion. If the acquisition process proceeds smoothly and is finalized, the eldest grandson, Lee (Chairman), will be able to uphold the pride of the broader Samsung family.

The same applies to Jeong (Chairman). Shinsegae is led by Jeong Yu-gyeong (Chairman), who is the granddaughter of Lee Byeong-cheol (Chairman) and the eldest daughter of Lee Myung-hee, Chairman of Shinsegae. The company operates businesses centered on department stores, including fashion and beauty (Shinsegae International), duty-free (Shinsegae Duty Free), and hotels (Shinsegae Central). As part of the broader Samsung family, the emphasis is placed on inheriting legitimacy. Although JoongAng Ilbo was founded by Lee Byeong-cheol (Chairman) in 1965, it was separated from the Samsung Group in 1999.

CJ Group also highly valued the synergy with its media and content businesses. CJ Group conducts entertainment business centered on CJ ENM, which operates content businesses in broadcasting, film, and music. If it acquires JoongAng Ilbo, it can expand the scope of its media business by combining news, current affairs information, and the media brand with existing broadcast and video content.

In particular, as the competitiveness of the content industry is determined not just by the success of individual programs or works, but by the ability to plan, produce, and distribute content across various platforms, the combination of media journalism and entertainment businesses could present new business opportunities. The integration with Daewoo Kium Group is also noteworthy. Daewoo Kium Group holds webtoon and web novel platforms such as Kid Studio. If CJ Group's broadcasting and entertainment businesses, Daewoo Kium Group's digital content businesses, and JoongAng Ilbo's news media are combined, a business portfolio covering diverse content fields can be established.

With the addition of Shinsegae, the scope of business linkage is expected to expand to include distribution and lifestyle content. Since Shinsegae operates department stores and fashion and beauty businesses, it can explore new areas of cooperation alongside CJ's content production and distribution capabilities and Daewoo Kium Group's financial and IT businesses.

Shinsegae stated in a press release that it "will jointly participate in the acquisition of JoongAng Ilbo with CJ," clarifying that this is in the form of Shinsegae joining the CJ consortium. It further explained, "We plan to create synergy between the two companies by respecting JoongAng Ilbo's unique identity and expertise while linking it with our premium cultural platform and lifestyle content."

In addition, managing a newspaper can expand social influence. CJ Group and Shinsegae, which have grown centered on consumer and industrial sites in food, logistics, distribution, and department stores, will be able to broaden their business areas while engaging in social issues and public opinion formation by taking on newspaper management. This also creates an opportunity to enhance their external standing in the political and business sectors. The recognition of JoongAng Ilbo, with its history of over 60 years, can contribute to expanding the scope of these groups.

A CJ Group official said, "CJ decided on joint participation considering the inheritance of the founding spirit of the previous generation's Lee Byeong-cheol (Chairman) and business synergies in media content, logistics, advertising, etc." The official added, "Specific matters will be handled through consortium consultations going forward," and further stated, "We plan to prioritize editorial independence and contribute to the stable management and strengthening of future competitiveness of JoongAng Ilbo."