CJ Group seeks business expansion in Middle East

Lee Jay-hyun, Chairman of CJ Group(left), discusses collaboration strategies in the tourism sector with Ahmed Al Khateeb, Saudi Arabia’s Minister of Tourism, during a meeting in Riyadh, the capital of Saudi Arabia, on the 4th. (CJ Group)

South Korean conglomerate CJ Group is expected to target the Middle East and North Africa (MENA) markets, following Chairman Lee Jay-hyun’s recent visit to Saudi Arabia.

According to CJ Corp. on Wednesday, Lee visited Saudi Arabia for three days from September 4 to 6, during which he met with various government officials in the cultural and entertainment sectors.

It was the first official invitation to Lee from the Saudi government.

The Saudi government and CJ Group have formed several partnerships in the cultural and entertainment fields.

In June 2022, CJ ENM Co. signed a memorandum of understanding with the Saudi Ministry of Culture to bolster cultural exchange and cooperation over the next decade.

Lee also met with Saudi Crown Prince Mohammed bin Salman during his visit to Korea later that year.

The Saudi government reportedly values CJ Group’s expertise in promoting Korean culture and entertainment, recognizing the company’s strengths in logistics, food, and cosmetics as vital to establishing its leadership in the MENA region.

CJ Group also identifies many business opportunities as Saudi Arabia aims to diversify its economy and enhance its culture and entertainment sectors as part of its “Vision 2030” initiative.

“By combining our expertise in entertainment and music with Saudi Arabia’s cultural resources and potential, we will create strong synergies in the global market,” Lee said.

With a population of 600 million and a median age primarily in their 20s and 30s, the MENA region presents significant potential.

As Arabic is the dominant language, Saudi Arabia acts as a gateway for expansion throughout the area.

Sogang University Professor Sung Il-kwang highlighted the interest of Middle Eastern youth in Korean culture, noting that the region’s efforts to soften its conservative image make culture an ideal area for cooperation.

CJ ENM has reportedly boosted its recognition among the younger demographic by co-hosting the region’s largest Korean culture festival, KCON, with the Saudi Ministry of Culture in both 2022 and 2023, with each concert attracting over 20,000 attendees.

CJ executives also visited the AlUla Studio, a film production facility featuring a 25,000 square meter sound stage, as Saudi Arabia explores ways to integrate K-content with its cultural infrastructure.

CJ Group plans to expand its business throughout the MENA region, leveraging its strength in the cultural and entertainment industry.

One key area of focus is logistics. CJ Logistics Corp. is constructing the Saudi Global District Logistics Center (GDC) in Riyadh’s Integrated Logistics Zone, near King Khalid International Airport, with completion anticipated this year.

As demand for Korean products rises across the MENA region, CJ is making active investments in cross-border e-commerce (CBE) logistics.

Demand for Korean products in Saudi Arabia is steadily increasing, with large supermarket chains like Danube Co. already stocking items such as seaweed, sauces, and dumplings.

CJ Cheiljedang Corp. is expanding production facilities to meet Halal certification requirements for food exports to Islamic regions. CJ Olive Young Corp. has also launched its own online shopping platform for cosmetics.