Shinsegae Co.,Ltd(004170)[Edaily Reporter Kim Ji-woo ] CJ Corp.(001040)CJ Group and Shinsegae have joined forces to enter the race to acquire the JoongAng Ilbo. Attention is focused on the reasons behind the decision by these two conglomerates—which primarily operate in food, content, and retail—to invest in a traditional media outlet facing financial difficulties. Analysts suggest that a combination of factors played a role, including synergies with their existing businesses, their historical ties as part of the broader Samsung family, and the JoongAng Ilbo’s social influence. However, given the limited growth potential of the newspaper industry, it remains to be seen whether this investment, amounting to hundreds of billions of won, will translate into tangible results.

According to industry sources on the 20th, Shinsegae Co.,Ltd. has decided to join the JoongAng Ilbo acquisition consortium formed by Daewoo Kiwoom Group and CJ Corp. Previously, the Daewoo Kiwoom-CJ Corp. consortium was selected the day before as the preferred bidder for the acquisition of JoongAng Ilbo’s management rights. A plan is being discussed in which Daewoo Kiwoom would be the largest shareholder, CJ Corp. the second-largest, and Shinsegae Co.,Ltd. the third-largest. The acquisition price is reportedly around 500 billion won. However, the final investment amount and equity stakes are expected to be finalized through negotiations.

Content, Culture, Food, Retail + Newspaper = ?

First, each of the three companies has its own business interests driving their decision to acquire the JoongAng Ilbo. CJ Corp. possesses capabilities in the production and distribution of video and entertainment content through CJ ENM CO., Ltd., Studio Dragon Corporation, and TVING. By adding the JoongAng Ilbo’s news, current affairs, and economic content—along with its reader base—CJ Corp. can expand the scope of its media business.

This also aligns with the synergy strategy between K-Food, K-Content, and K-Beauty that CJ Corp. Chairman Lee Jay-Hyun has long emphasized. CJ Corp. has been pursuing a strategy to raise interest in Korean culture through content and link that interest to consumption of food and beauty products. It is anticipated that CJ Corp. will be able to explore new digital services and advertising businesses by leveraging JoongAng Ilbo’s content capabilities.

Shinsegae Co.,Ltd. is placing emphasis on synergies with its department store and duty-free business. Shinsegae Co.,Ltd., which is participating in this acquisition bid, is an affiliate of Chairman Jeong Yu-kyung’s group and is pursuing a strategy to expand department stores from mere shopping spaces into cultural and experiential platforms. There is potential to integrate JoongAng Ilbo’s content in the fields of culture, arts, and fashion into exhibitions, events, and customer programs.

Shinsegae Co.,Ltd. also plans to respect the JoongAng Ilbo’s expertise while creating synergies by linking it with its own premium cultural platforms and lifestyle content. Daewoo Kiwoom Group is also mentioned as having the potential to integrate the JoongAng Ilbo with the content business of its affiliate, KidariStudio, which includes webtoons and web novels.

Seo Ji-yong, a professor in the Department of Business Administration at Sangmyung University, explained, “CJ ENM CO., Ltd.’s video and entertainment content can be enhanced by JoongAng Ilbo’s news and knowledge content, as well as its reader base,” adding, “There is also potential for collaboration in content, events, and advertising in the food, culture, and beauty sectors.”

Ties to the Wider Samsung Family and the Media Outlet’s Influence In addition to

business synergies, the historical ties to

the wider Samsung family

are cited as a key factor behind the acquisition. The JoongAng Ilbo is a newspaper founded in 1965 by the late Lee Byung-chul, the founder of Samsung. CJ Corp. Chairman Lee Jay-Hyun is the founder’s grandson, and Shinsegae Co.,Ltd. Chairwoman Chung Yoo-kyung is his granddaughter. CJ Corp. is also a major shareholder, already holding a 9.24% stake in the JoongAng Ilbo through its affiliate, CJ Olive Networks.

A CJ Corp. official stated, “We decided to participate jointly to carry on the founding spirit of the late Chairman Lee Byung-chul and to leverage business synergies in areas such as media content, logistics, and advertising,” adding, “Specific details will be determined through consortium discussions.”

The social influence wielded by the JoongAng Ilbo is also a noteworthy asset. As CJ Corp. and Shinsegae Co.,Ltd. operate businesses across various industries—including food, logistics, content, and retail—they are subject to the influence of policy and regulatory environments. Analysts note that the brand recognition and influence on public opinion held by a major national daily newspaper constitute intangible assets that are difficult to evaluate based solely on direct business revenue.

Lee Jong-woo, a professor in the Department of Distribution and Marketing at Namseoul University, analyzed, “Since CJ Corp. and Shinsegae Co.,Ltd. operate diverse businesses, they are closely linked to government policies and the regulatory environment.” He added, “It is likely that they considered the social influence of the JoongAng Ilbo and its strategic value at the group level, rather than simply coordinating advertising or promotions for their affiliates.”

Regarding the relationship with the broader Samsung family, Professor Lee noted, “In corporate acquisitions, not only economic viability but also similarities in corporate culture and management philosophy are important,” adding, “Existing relationships could have a positive effect on organizational stability following the acquisition.”

Investment Burden in the Hundreds of Billions of Won… Securing Editorial Independence Is Key The key lies in

achieving tangible results relative to the investment. The JoongAng Ilbo entered a financial restructuring program last July. While this transaction is being carried out through a third-party private placement—meaning the investment funds are intended to improve the company’s financial structure—the challenge of securing a sustainable revenue model amid the structural downturn in the newspaper industry remains.

Professor Seo pointed out, “We must be cautious if we are merely hoping for a recovery in the newspaper publishing business,” adding, “The key lies in whether the company can generate sustainable revenue from digital subscriptions and knowledge services, taking into account not only the acquisition price but also the additional costs of normalization.”

Issues regarding editorial independence and public interest arising from large corporations’ ownership of media outlets also remain to be addressed. This is because public trust in the media could be undermined if a company’s business interests influence reporting on its affiliates or on policy and regulatory issues.

Professor Seo emphasized, “From the perspective of a media organization, there are concerns about a weakening of public service,” adding, “Since using news coverage for the promotion of affiliates could undermine trust, editorial independence must be a prerequisite.”

CJ Corp. has stated that it will prioritize editorial independence above all else and contribute to the stable management and future competitiveness of the JoongAng Ilbo. A CJ Corp. official said, “Going forward, we plan to prioritize editorial independence and contribute to the stable management and future competitiveness of the JoongAng Ilbo.”