[News Figures] CJ Puts 'Sawi' Front and Center Instead of Daughter and Son

The CJ Group has been knocking on the door of the Middle East and North Africa market for nearly 20 years. It all started in 2006 when Chairman Lee held global on-site training with the management team in Dubai, United Arab Emirates (UAE). CJ CGV opened 14 screening rooms in Saudi Arabia in collaboration with local theater operators and hosted the K-pop festival 'KCON' in Riyadh in cooperation with the Saudi Ministry of Culture. KCON is an event that combines K-pop concerts with K-food, K-beauty, webtoons, and K-fashion. CJ Olive Young introduced its own color cosmetics private brand (PB), WakeMake, to the UAE e-commerce market.

As interest in Korean music, dramas, and films has spread, CJ Group, the 'vanguard of K-culture,' has seized the opportunity and launched a full-scale attack on the Middle East market. CJ Group Chairman Lee Jae-hyun recently visited Riyadh, the capital of Saudi Arabia, at the invitation of the Saudi Ministry of Culture. Chairman Lee said, "By combining CJ Group's cultural industry know-how with Saudi Arabia's potential, we will create a unique synergy in the global market." He was accompanied by his son-in-law, Jung Jong-hwan, CJ ENM's Head of Content and Global Business.

Head Jung is the husband of Lee Kyung-hoo, CJ ENM's Head of Brand Strategy and Chief Creative Officer (CCO) of the Music Content Business Division, who is Chairman Lee's eldest daughter. The two met while pursuing their master's degrees at Columbia University in the United States. After earning bachelor's and master's degrees in Technology Management from Columbia University, Head Jung worked at Citigroup and Morgan Stanley. Chairman Lee also has experience working at Citibank before joining CJ. He married Ms. Lee in 2008 and joined CJ's U.S. regional headquarters in 2010.

Since joining CJ, Head Jung has been in charge of global business and mergers and acquisitions (M&A). He rapidly rose through the ranks, serving as Head of Strategic Planning at CJ America, then as Head of CJ Global Integration and CEO of CJ's North American headquarters. In 2018, he led the acquisitions of the U.S. frozen food company Schwan's Company and logistics company DSC Logistics. According to internal sources, Head Jung earned Chairman Lee's recognition for his management capabilities during this process. Since the Schwan's acquisition, CJ CheilJedang's overseas food division sales have soared. Last year, overseas food sales accounted for 47.8% of the total, nearly half. Among these, sales in the U.S. market accounted for 81% (KRW 4.3807 trillion) of the total.

Earlier this year, he joined CJ ENM in February to oversee global business. To globalize 'K-culture,' he plans to strengthen content planning and production capabilities and focus on expanding domestic and international distribution networks by overseeing CJ ENM's entertainment business division, global business, and content distribution business. His top priority is to 'revive Fifth Season.' In November 2021, CJ ENM acquired management rights of the Hollywood production studio Fifth Season (formerly Endeavor Content) for about KRW 920 billion. Fifth Season posted losses from the first year of acquisition due to a downturn in the industry. Fifth Season's poor performance also dragged down CJ ENM's earnings. Operating profit was KRW 296.8 billion in 2021, KRW 137.3 billion in 2022, and a loss of KRW 14.6 billion last year. Fifth Season's goal for this year is a turnaround.