The CJ Group, a Korean food and entertainment conglomerate, said Wednesday it has joined the race to buy the Korean unit of U.S. fast food chain McDonald's.

McDonald's, which directly manages about 400 stores in Korea, has been looking for local partners to run them as franchise stores that pay annual commissions instead. 

In a regulatory briefing, the CJ Group said it has submitted a letter of intent to the American headquarters of McDonald's, but "hasn't decided which affiliate will take over" the Korean unit.

Industry sources estimate the deal could fetch around 300-500 billion won ($257-428 million), and expect that CJ Foodville, a food franchise unit, could be in charge of operating the fast food chain if it wins the deal. (Yonhap)