Shinsegae has joined the bidding for the JoongAng Ilbo, following CJ Group's lead. This marks a collaborative effort by the broader Samsung family to acquire the newspaper founded by the late Lee Byung-chul, the founder of Samsung. CJ is highlighting synergies in media content, logistics, and advertising, while Shinsegae is focusing on integrating its premium cultural platform with lifestyle content, raising interest in the direction of business expansion post-acquisition.
According to industry sources on October 20, Shinsegae will participate in the Daou Kiwoom-CJ consortium, which has been selected as the preferred bidder for acquiring management rights in JoongAng Ilbo. A Shinsegae representative stated, "Shinsegae will jointly participate in the acquisition of JoongAng Ilbo with CJ, forming part of the CJ consortium." They added, "We plan to create synergies by respecting JoongAng Ilbo's unique identity and expertise while linking it with our premium cultural platform and lifestyle content."
Shinsegae, which includes Shinsegae Department Store and duty-free shops (Shinsegae DF), is associated with Chairman Jeong Yu-kyung. As department stores evolve from mere retail spaces to experiential platforms combining exhibitions, performances, cultural content, food and beverage, and fashion and beauty, there are numerous opportunities to leverage JoongAng Ilbo's content and brand.
CJ also cited business synergies and the founding spirit of JoongAng Ilbo as reasons for its participation in the acquisition. A CJ Group spokesperson explained, "CJ decided to participate jointly, considering the founding spirit of our late chairman Lee Byung-chul and the potential for synergies in media content, logistics, and advertising. We will proceed with specific matters through consortium discussions in the future."
CJ is already a major shareholder of JoongAng Ilbo, holding 9.24% of its shares through its subsidiary CJ Olive Networks. The company is involved in broadcasting, video, music, and entertainment, and also operates an online video service (OTT). If JoongAng Ilbo's news and digital content are integrated with CJ's existing content business, it could broaden the scope of its media operations.
The acquisition also carries symbolic significance as part of the broader Samsung family. JoongAng Ilbo was founded by Lee Byung-chul in 1965 but was separated from Samsung in 1999. CJ Group Chairman Lee Jae-hyun is the grandson of the founder, while Shinsegae Chairman Jeong Yu-kyung is his granddaughter. With both CJ and Shinsegae participating in the acquisition, it appears that the founder's family is reuniting as investors.
However, Shinsegae is reportedly participating as an equity investor rather than seeking management control. The final investment ratios, voting rights structure, and board composition among Daou Kiwoom, CJ, and Shinsegae have yet to be determined. The roles of each group and the extent of their management participation are expected to be clarified during the formal contract process.
CJ has also emphasized the principle of editorial independence for JoongAng Ilbo. A CJ Group representative stated, "We plan to prioritize editorial independence and contribute to the stable management and future competitiveness of JoongAng Ilbo." Internally, JoongAng Ilbo is demanding assurances regarding editorial independence, employment continuity, recruitment of reporting staff, and future investment plans from the new major shareholder, indicating that ensuring the independence of the media outlet will be a challenge in the pursuit of business synergies.
* This article has been translated by AI.
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