[Bae Joon-chul’s CEO Analysis Vol.13] Lee Sun-jung, CEO of CJ Olive Young

[CEONEWS = Reporter Bae Joon-chul] In 2020, the global pandemic delivered a devastating blow to countless offline retail businesses. Stores shuttered, and consumers flocked online in droves. While most companies struggled for survival, CJ Olive Young began an astonishing ascent—defying gravity like a rollercoaster running in reverse. At the center of this dramatic turnaround stood one name: Lee Sun-jung, who became CEO in 2022.

Lee transformed the crisis into an opportunity for omni-channel innovation, elevating Olive Young into a dominant beauty giant. By seamlessly merging offline strengths with digital capabilities, she set a new standard for the beauty retail industry. Under her leadership, Olive Young posted record results in 2023 — ₩3 trillion in revenue and ₩300 billion in operating profit — an achievement that reshaped the Korean beauty landscape.

This 13th installment of Bae Joon-chul’s CEO Analysis explores Lee Sun-jung’s visionary leadership and Olive Young’s formula for success. How did she seize opportunity amid crisis, lead market trends, and secure sustainable growth? Here is the anatomy of that achievement.

Turning the Pandemic Paradox into a Digital Breakthrough

The first key to Lee’s success was her bold digital transformation. When pandemic restrictions crippled offline retail, she doubled down on digital integration. Beginning in 2020, Olive Young’s omni-channel strategy went far beyond simply expanding its online mall.

Her most innovative move was repurposing 1,300 offline stores into urban logistics hubs. The flagship service, “Today Dream,” allowed customers to receive their beauty essentials within three hours of ordering online — combining the convenience of e-commerce with the immediacy of physical stores.

This approach maximized efficiency without the massive infrastructure costs typical of e-commerce players. Amid lockdowns, Today Dream became a vital channel delivering essential beauty products swiftly to customers. By 2023, online sales exceeded 40% of total revenue, establishing Olive Young as a true omni-channel powerhouse.

Data-Driven Personalization: The Power of Hyper-Customized Marketing

Lee recognized early the strategic value of data. By integrating vast volumes of online and offline customer data, she built an advanced AI-powered personalization engine that analyzes skin types, brand preferences, and buying behavior.

This data-driven curation transformed the shopping experience, boosting loyalty and engagement. Olive Young’s mobile app surpassed 10 million monthly active users (MAU) — the undisputed No.1 in Korea’s beauty retail sector.

“All Live” and the Rise of Entertainment-Commerce

Live commerce became a defining trend of the pandemic era, and Lee seized it with “All Live,” Olive Young’s in-house live shopping platform. Unlike typical sales broadcasts, All Live featured professional beauty MDs and influencers offering tutorials, real-time Q&A, and exclusive flash deals — turning shopping into an engaging, interactive experience.

This innovation repositioned Olive Young as not just a retailer but a content-driven beauty platform, merging commerce with entertainment.

Experiential Flagship Stores: Transforming Retail into a Beauty Playground

While driving digital expansion, Lee never abandoned Olive Young’s offline DNA. Instead, she reinvented it. Flagship stores in Myeong-dong and Gangnam became immersive “beauty playgrounds,” featuring skin diagnosis zones, AI-based product recommendations, and open testing spaces where customers could explore trends hands-on.

These experiential spaces strengthened brand affinity and created a virtuous cycle—online discovery leading to offline purchase. The Myeong-dong flagship, in particular, has become a must-visit destination for international tourists, doubling as a showcase for K-beauty culture.

From Distributor to Incubator: A Launchpad for K-Beauty Brands

Lee repositioned Olive Young as an incubator for emerging K-beauty brands rather than a mere sales channel. By actively onboarding and promoting indie labels, she helped brands like The Lab by Blanc Doux, Numbersinn, and Dr.G achieve breakout success.

Today, over 2,000 brands are sold through Olive Young, with 70% being domestic SMEs—a testament to its role as a gateway for K-beauty innovation and diversity.

Efficiency and Accessibility: Becoming the Everyday Beauty Hub

In parallel, Lee optimized Olive Young’s retail network. Low-performing stores were closed, while new, smaller-format stores opened near high-foot-traffic areas and residential zones. As a result, consumers in Seoul can find a store within a 10-minute walk, reinforcing Olive Young’s image as an everyday beauty convenience hub — as familiar and ubiquitous as a convenience store.

Customer-Centric DNA: Redefining Beauty Retail

At the heart of Lee’s leadership is an unwavering customer-first philosophy. Every innovation traces back to consumer insight. By recognizing that customers wanted multi-brand variety and value, she effectively ended the era of single-brand “road shops” (like Missha, Innisfree, and Etude House) and ushered in the age of multi-brand retail.

The data speaks volumes: between 2015 and 2023, single-brand stores dropped from 1,000+ to under 300, while Olive Young’s store count rose from 800 to 1,300 — marking a complete shift in Korea’s beauty consumption paradigm.

K-Beauty’s Global Ambassador: Expanding Cross-Border E-Commerce

Olive Young is now a global ambassador for K-beauty, operating a cross-border platform that allows overseas consumers to purchase Korean products directly. Lee has declared her vision to make Olive Young “the leading platform showcasing trendy K-beauty to the world.”

Overseas sales surged more than 150% year-on-year, establishing cross-border commerce as a key growth engine.

ESG and Sustainable Beauty: The Rise of Conscious Consumption

Under Lee’s leadership, ESG initiatives have become a corporate priority. Olive Young has introduced eco-friendly packaging, refill stations, and clean beauty curation, aligning with the values of sustainability-conscious MZ consumers.

Its empty-bottle recycling campaign now processes over one million containers annually, proving the company’s environmental commitment is more than a marketing slogan—it’s a movement toward a sustainable beauty ecosystem.

The Next Chapter of “Lee Sun-jung Magic”: Challenges and Vision

Despite its success, Olive Young faces new challenges: intensifying competition from platforms like Coupang, Naver, and niche vertical e-commerce players, as well as global beauty brands expanding aggressively in Korea.

To stay ahead, continuous innovation will be crucial — from identifying emerging beauty trends to expanding its international footprint. The company’s evolution toward a lifestyle curation platform could be the next growth frontier.

Toward a No.1 Omni-Channel Lifestyle Platform

Lee Sun-jung has articulated a bold vision:

“We aim to deliver healthy beauty to everyday life as the No.1 omni-channel lifestyle platform.”

Having turned crisis into opportunity and led Olive Young to dominance, Lee now stands at the forefront of K-beauty’s next transformation. Her next chapter will likely shape not only Olive Young’s trajectory but also the future of Korea’s beauty industry itself. Whether her innovation DNA can once again turn fierce competition into a new leap forward remains the story to watch.