[Market Focus] CJ Rises Over 3% on Expected Benefit from Visa-Free Entry for Chinese Tourists

CJ shares are showing strong performance in early trading on the 27th. This is due to expectations of benefiting from the temporary visa-free entry for Chinese group tourists, which will be allowed starting September 29.

As of 9:38 a.m. on this day, CJ is trading at 158,200 won, up 4,900 won (3.20%) from the previous trading day.

This is interpreted as a result of growing expectations for tourism benefits, following the government's decision to temporarily allow visa-free entry for Chinese group tourists from September 29 this year to June 30 next year, as part of efforts to revitalize the economy and tourism.

Park Sangjun, a researcher at Kiwoom Securities, stated in a report on the 26th, "With the rising popularity of K-content and K-beauty, the number of foreign tourists visiting Korea continues to increase, leading to high growth in foreign sales at Olive Young. The temporary visa-free entry for Chinese group tourists starting September 29 this year is expected to further accelerate sales growth momentum."

Researcher Park added, "We maintain a 'Buy' investment rating on CJ, with a target price of 200,000 won. Thanks to Olive Young's high growth driven by inbound tourism and Foodville's long-term growth potential, the company's overall corporate value is expected to steadily rise."

Additionally, the fact that Lee Jay-hyun, Chairman of CJ Group, accompanied the South Korea-U.S. summit as part of the economic delegation also appears to have boosted investor sentiment. On the 25th (local time), Chairman Lee attended the Korea-U.S. business roundtable, which brought together government officials and business leaders from both countries, and reportedly engaged in natural conversations with American businesspeople on topics such as K-pop and K-food amid the recent spread of K-culture.