The division's later changed to CJ Entertainment in September, in time for their first film distribution deal with the movie Secrets and Lies.

To aid their position in the film distribution industry CJ Entertainment built the first multiplexes of Korea with the first one, CGV Gangbyeon 11, opening in April 1998.

CJ Entertainment's importance in the Korean film industry grew in 1997–1998 when the nation was caught in the wave of the Asian financial crisis.

Many smaller film companies had to close up, leaving the road open for CJ Entertainment to capitalize on the new-found popularity of Korean cinema brought on by the success of Shiri in 1999.

In January 2000, CJ Entertainment Inc was officially founded, and the first film Chunhyang to be distributed.