CJ Group and Shinsegae are participating in the acquisition of JoongAng Ilbo, a newspaper founded by the late Lee Byung-chul, drawing attention to their ties within the Samsung family. While Lee's grandson, CJ Chairman Lee Jae-hyun, and granddaughter, Shinsegae Chairwoman Jeong Yu-kyung, have teamed up, Samsung Group has opted out of the bidding.
According to industry sources on October 22, Shinsegae has joined the Daou Kiwoom and CJ consortium as an equity investor, which was initially pursuing the acquisition alone before partnering with CJ ahead of the main bidding.
This acquisition is noteworthy due to the historical connection between JoongAng Ilbo and the broader Samsung family. The newspaper was founded by Lee Byung-chul in 1965, and his son, the late Lee Kun-hee, began his management training as a director of JoongAng Ilbo and Dongyang Broadcasting in 1968. JoongAng Ilbo was part of the Samsung Group until it was spun off in 1999, with management taken over by Hong Seok-hyun's family, the brother-in-law of Lee Kun-hee. Following a liquidity crisis, JoongAng Ilbo is now up for sale, marking a shift in ownership after 27 years, with descendants of the founder stepping in as investors.
Lee Jae-hyun is the son of the late Lee Maeng-hee, honorary chairman of CJ Group, while Jeong Yu-kyung is the daughter of Lee Myung-hee, chairwoman of Shinsegae Group. It is known that Lee Myung-hee has a special attachment to JoongAng Ilbo, founded by her father, Lee Byung-chul.
Both CJ and Shinsegae have established independent business domains after separating from Samsung. However, analysts suggest that the historical significance of the media company founded by their ancestor may have influenced their decision to participate in the acquisition, with some interpreting it as a family-level determination to not fully relinquish control of the newspaper.
In contrast, Samsung has not participated in this acquisition process. Reports indicate that Samsung did not consider acquiring JoongAng Ilbo from the outset. Samsung Electronics Chairman Lee Jae-yong is said to be focused on core businesses such as semiconductors and smartphones. Historically, Samsung operated a media division but distanced itself from media and entertainment after the Asian financial crisis.
CJ has cited the founder's spirit as the official reason for its participation. A CJ representative stated, “We decided to jointly participate considering the legacy of founder Lee Byung-chul and potential business synergies in media content, logistics, and advertising.” CJ already holds a 9.24% stake in JoongAng Ilbo through its subsidiary CJ Olive Networks. CJ, which operates in broadcasting, film, music, and online video services, sees opportunities for collaboration with JoongAng Ilbo in news, digital content, and advertising.
Shinsegae's approach appears to focus more on equity investment rather than securing management control. A Shinsegae representative explained, “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.”
Under Jeong Yu-kyung's leadership, Shinsegae is enhancing its premium content across department stores, duty-free shops, and fashion and beauty sectors. There is speculation about integrating JoongAng Ilbo's media brand and cultural content into existing retail platforms.
The acquisition process for JoongAng Ilbo is still ongoing. The acquisition price is estimated to be around 500 billion won, with discussions expected to clarify the investment ratios and management participation among consortium members. Ensuring the operational stability and editorial independence of JoongAng Ilbo post-acquisition is also seen as a key challenge, with CJ having expressed its commitment to prioritizing editorial independence.
An industry insider remarked, “The fact that CJ and Shinsegae are jointly pursuing the acquisition of JoongAng Ilbo without Samsung's involvement is a symbolic representation of their historical ties within the Samsung family. However, it will be crucial to balance each company's business interests while securing JoongAng Ilbo's independence and competitiveness after the acquisition.”
* This article has been translated by AI.
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