Kang Shin-ho returns as CJ CheilJedang CEO to revive sagging sales

South Korea’s CJ Group, which operates the country’s largest food and beverage company CJ CheilJedang Corp. and entertainment giant CJ ENM Co., on Friday carried out fewer-than-expected executive reshuffles as the conglomerate is struggling with falling sales at key affiliates.

The conglomerate appointed Kang Shin-ho, chief executive of CJ Logistics Corp., as the new leader of the group’s flagship unit CJ CheilJedang. Kang has also been promoted to the role of vice chairman.

Kang replaces Choi Eun-seok as CJ CheilJedang CEO.

CJ Logistics will now be headed by Shin Young-soo, who has so far led the logistics firm’s parcel business unit.

The group reshuffled a total of 19 executives in the latest annual personnel changes – the smallest number since 2020.

“The executive reshuffle, strictly based on performance, is one of the smallest in scale given the current tough business conditions,” said a CJ Group official.

He said Group Chairman Lee Jay-hyun agonized over this year’s executive reshuffles, which come as several group affiliates are showing signs of slowing in sales and profit growth.

KANG COMES TO RESCUE

Earlier this week, CJ CheilJedang, known for its food brand Bibigo, said its 2023 net profit fell by nearly a third to 559.5 billion won ($419 million).

Operating profit declined 22.4% on year to 1.29 trillion won and sales fell 3.5% to 29 trillion won.

Analysts said Kang is returning to the food and beverage giant’s top job to reinvigorate the company’s sagging growth momentum.

While leading CJ Logistics since the end of 2020, he has conducted vigorous corporate restructuring to improve sales and profitability.

Last year, CJ Logistics posted a record annual operating profit of 480.2 billion won on all-time high sales of 11.77 trillion won on a consolidated basis.

Kang joined the conglomerate in 1988 as a rank-and-file employee, going up the corporate ladder to assume various roles, including CJ Group’s human resources team head, CEO of CJ Freshway Corp., a fresh food delivery firm, and CJ CheilJedang’s food business division chief.

Before moving to CJ Logistics, he was the CEO of CJ CheilJedang for about a year.

CEOs THAT REMAIN

Shin, the new CEO of CJ Logistics, is credited with launching a new delivery service brand, O-NE, in March, integrating various logistic services to cut costs and improve profitability.

Heads of the conglomerate’s five other key affiliates retained their posts during the latest executive reshuffles.

They are Jeong Seong-pil of CJ Freshway; Lee Sun-jung of CJ Olive Young, Korea’s largest beauty store chain; Kim Chan-ho of CJ Foodville, a food service subsidiary; Koo Chang-geun of CJ ENM, which manages streaming service provider TVing and film production company Studio Dragon Corp.; Huh Min-hoe of CJ CGV, Korea’s leading multiplex cinema chain.

CJ ENM, which suffered an annual loss of 14.6 billion won in 2023 on a consolidated basis, is showing signs of business improvement led by a turnaround in TVing and Fifth Season, CJ ENM’s global studio.

CJ CGV returned to the black last year after bleeding for years amid the outbreak of the COVID-19 pandemic.

Write to Sul-Li Jun at sljun@hankyung.com

In-Soo Nam edited this article.