It was confirmed on the 4th that CJ Logistics conducted a large-scale executive appointment regarding its Korean institutional sector. CJ Logistics has three main institutional sectors: Korean business, global business, and construction.
According to the delivery industry on the 4th, CJ Logistics conducted appointments for 13 executives in the Korean institutional sector, including Yoon Jin, the representative of the Korean institutional sector, effective from the 1st. The sectors included in the Korean institutional sector are ▲ Fulfillment and Transportation (FT) headquarters ▲ O-NE headquarters ▲ sales headquarters.
Representative Yoon stepped down after about a year in office due to this appointment. Yoon took office as representative in May of last year. CJ Logistics decided not to appoint a new representative for the Korean institutional sector and instead has Shin Young-soo, the representative of CJ Logistics, serve concurrently.
Yoon Cheol-joo, who was in charge of center solutions, was appointed as the new FT Deputy Minister. The company explained that Yoon was appointed as the FT Deputy Minister to lead innovation in logistic centers and port handling sites.
CJ Logistics's large-scale appointments concerning its Korean institutional sector seem to stem from poor performance. Following the appointment of Representative Yoon, the performance of CJ Logistics, excluding global and construction sectors, in the third quarter of last year was a revenue of 1.6666 trillion won and an operating profit of 105.2 billion won, reflecting a 3% and 5% increase respectively compared to the same period last year.
Subsequently, the operating profit in the fourth quarter of last year decreased by 24% to 97.1 billion won compared to a year earlier, and the operating profit in the first quarter of this year also decreased by 22% to 74 billion won. The industry expects that the operating profit in the second quarter of this year also decreased compared to a year earlier.
According to LS Securities, the revenue of CJ Logistics's Korean institutional sector in the second quarter of this year is projected to be 1.755 trillion won, which is a 5% increase compared to the same period last year, but the operating profit is estimated to decrease by 12% to 92 billion won.
A representative of CJ Logistics noted, "Since this is a time that requires change and innovation, we executed personnel renewal to place talents who can lead this effort at the forefront," adding, "The operating profit of the Korean institutional sector has temporarily decreased due to initial expenses from the implementation of O-NE (7-day delivery) and new orders in the CL (contract logistics) business sector."