'On-site Management Kickoff' Lee Jae-hyun... First Official Visit to CJ Olive Young

Encouraging Employees at CJ Olive Young Headquarters
Preparing in Advance for Upcoming Crisis, OnlyOne's Achievement
"A Model for Other Companies in the Group to Learn From"

Lee Jae-hyun, Chairman of CJ Group, made his first official public appearance of the new year by meeting with employees of affiliated companies. Known as a "reclusive manager" for usually refraining from external activities, his unusual move to kick off on-site management early in the year has sparked expectations of changes aimed at revitalizing the group this year. Last year, marking the company's 70th anniversary, he reiterated the group's management philosophy of the "Only One Spirit," urging a return to the original mindset and overcoming crises, drawing attention to the upcoming group executive appointments and management strategies to be announced soon.

Lee Jae-hyun, Chairman of CJ Group, visited the CJ Olive Young headquarters in Yongsan-gu, Seoul on the 10th and greeted employees with a bright smile.
[Photo by CJ Group]

According to CJ Group on the 11th, the chairman visited the CJ Olive Young headquarters in Dongja-dong, Yongsan-gu, Seoul the day before, accompanied by some holding company executives including Kim Hong-gi, CEO of CJ Corporation. At the meeting, he encouraged key executives including Lee Seon-jeong, CEO of CJ Olive Young, reviewed this year’s business plans, and then toured four floors including the Olive Young MD Business Division, Brand Business Division, and Digital Business Division, personally encouraging hundreds of young employees for about an hour.

This was the first time in five years that the chairman visited an affiliate’s site, since his visit to the CJ CheilJedang Food and Bio Research Institute 'CJ Blossom Park' in Yeongtong-gu, Suwon-si, Gyeonggi Province in 2019. A CJ Group official explained, "It was a visit to encourage not to be complacent with achievements but to prepare for a greater leap." CJ Olive Young’s cumulative sales up to the third quarter of last year reached 2.7971 trillion won, and operating profit was 274.2 billion won, already surpassing the previous year’s full-year sales (2.7809 trillion won) and operating profit (271.4 billion won) within just three quarters.

The chairman highly praised CJ Olive Young for strengthening its online-to-offline (O2O) capabilities during the COVID-19 period and successfully preparing for the re-expansion of the offline market, effectively responding in advance to future crises. He said, "Olive Young has created Only One results by preparing in advance for upcoming crises," adding, "It is not just about good performance, but the way the business is prepared and the working methods should serve as a model for other companies in the group." The Only One philosophy is CJ Group’s management principle meaning "to always pursue and achieve being the first, the best, and differentiated in every aspect."

He also urged proactive preparation for the future, not to be complacent with the saturated domestic market, but to accelerate global market penetration and expand business areas. Additionally, he emphasized the responsibility of employees to create a healthy beauty ecosystem as a market-leading business and requested mutual growth with partner companies.

CJ Headquarters
Photo by CJ Group

Following CJ Olive Young, the chairman is reportedly planning to visit other group affiliates that have recently achieved results. Some analysts interpret this on-site management as a strategic move to firmly spread the message of rebuilding the Only One spirit, encompassing even those affiliates whose performance was relatively poor last year. In November last year, to commemorate the group’s 70th anniversary, he presided over a confidential "strategy meeting" with affiliate CEOs and executives, stressing, "In a situation where group growth is stagnant, the responsibility to revisit the Only One spirit is more important than ever."

Global expansion beyond domestic business is also a common management focus for CJ Group this year. Son Kyung-sik, Chairman of CJ Group, encouraged in the group’s New Year address earlier this month, "Let’s rebuild the Only One spirit and become the overwhelming number one with super-gap capabilities," and announced plans to pursue global growth for businesses that have already secured super-gap capabilities. Industry insiders believe that CJ Group, which has yet to announce executive appointments among major distribution groups, is currently deliberating to find suitable candidates or to establish a new lineup based on this vision.

A CJ Group official stated, "(The chairman) has not yet set specific schedules such as which affiliate to visit next after CJ Olive Young or when to visit," adding, "While this on-site management is clearly a gesture of encouragement for affiliates that have achieved results, it is unrelated to any disciplinary or reward measures."