CJ Group Chairman Lee Jae-hyun's visit to the United States later this month is seen as a move to reinforce the conglomerate's image as a leader of "K-lifestyle" in the global market. The trip highlights CJ's position as the only major Korean conglomerate operating across all K-wave-related industries, including food, beauty, and entertainment, which are gaining popularity overseas. The move is interpreted as an effort to find the group's survival strategy abroad to overcome sluggish domestic business.
According to industry sources Monday, Lee plans to closely review the North American operations of key affiliates during his U.S. trip. On the food front, he will meet the new management of Schwan's, the American frozen food company that CJ CheilJedang acquired in 2019. In March, CJ CheilJedang appointed Gregory Yep, head of CJ CheilJedang's food business division, as interim CEO of Schwan's.
Schwan's posted revenue of 4.9132 trillion won ($3.6 billion) last year, more than double the 2.2 trillion won recorded at the time of acquisition. Although the 2 trillion won acquisition price sparked controversy as an excessive bet, the deal is now viewed as a masterstroke. CJ CheilJedang's decision early this year to acquire the remaining 24.5% stake held by the Schwan family, making it a wholly-owned subsidiary, is also seen as part of efforts to strengthen North American operations. "The Americas account for more than 80% of overseas business, and the largest plant investment is currently underway in the U.S., targeting completion by the end of 2027," said Choi Ko-un, an analyst at Korea Investment & Securities. "Overseas food operations show strong performance in both growth and margins."
Lee also plans to personally tour the first offline store that CJ Olive Young will open late this month to tap into the U.S. market, the largest export destination for K-beauty. Olive Young, which has become a must-visit destination for foreign tourists in Korea, emerged as CJ Group's key cash cow last year, with revenue and operating profit rising 21.8% and 22.5%, respectively, from the previous year. This year, the company plans to open offline stores across the U.S. one after another and hold its Beauty Festa, previously held domestically, overseas, including in the U.S.
Lee has paid particular attention to Olive Young's overseas performance. His visit to the newly opened Olive Young Central Myeongdong Town in March was also aimed at making a final review of the global success formula for K-beauty, ensuring that the growth DNA cultivated at home could be transplanted into the first U.S. store.
He will also attend "THE CJ CUP Byron Nelson," a PGA Tour event that CJ Group is sponsoring for its 10th consecutive year. In particular, during the tournament, Lee plans to visit "House of CJ," an experiential platform CJ operates to showcase Korean culture to spectators from around the world, personally taking on the role of a K-wave evangelist. CJ will present a comprehensive K-lifestyle experience, including Bibigo product displays, an Olive Young K-beauty experience zone, CJ ENM music content, ScreenX screenings, K-cocktail tastings, TLJ (Tous Les Jours) bakery tastings, merchandise giveaways, and photo zones.
CJ ENM's role in connecting synergies among affiliates is also drawing attention. A prime example is the upgrade of KCON, the annual K-pop concert, into a K-lifestyle festival encompassing beauty and food. At "KCON Japan 2026" next month, K-beauty and K-food booths will be operated, and Olive Young will hold its first overseas Festa. "Just as CJ ENM established joint ventures with Japanese terrestrial broadcaster TBS and local OTT platform U-NEXT after Chairman Lee visited Japan last year, multiple outcomes are expected to materialize following this U.S. visit," an industry official said.
