CJ Group Faces Significant Risks from High Leverage, Litigation, and Operational Challenges; Dividend Policy Maintained

Consolidated debt ratio 175.56%, standalone 12.96%, total borrowings 19.98 trillion won, CJ CGV debt ratio 700.9% indicating high financial leverage.
Contingent liabilities: lawsuits (plaintiff 606.9 billion won, defendant 166.4 billion won), guarantees 289.4 billion won, collateral 1.6 trillion won, Libya ICC counterclaim $2.7 billion (suspended).
Subsidiary risks: CJ CheilJedang (grain price/forex/freight volatility, bio R&D burden, Chinese competition, livestock diseases), CJ ENM (advertising/OTT competition, regulations, content uncertainty), CJ Logistics (economic/oil/forex/minimum wage/strike risks).
K-Culture Valley delay penalty notice of 314.4 billion won, CJ Freshway FTC fine of 16.7 billion won.
Dividend policy: maintain payout of at least 70% of standalone net income for FY2023-2025. 2024 dividend yield: common 3.2%, preferred 5.3%.
No plans for share buyback or cancellation.

Filing: [Correction of Description] Securities Registration Statement (Debt Securities)
Company: CJ (001040)
Submission: CJ Corp.
Receipt: 02-03-2026
Amended (Refer to related filing)