Global Sae-A Explores Sale of Paper Division, UBS Appointed as Lead Advisor

Global Sae-A Group has initiated a review of strategic options for its paper and packaging division, appointing UBS as the sales organizer to explore potential investor interest. The process began with teaser letters sent to prospective strategic and financial investors, with more than 20 domestic and international parties reportedly considering the acquisition opportunity.

The paper business represents the largest operator in Korea’s corrugated base paper sector, holding approximately 30% market share in corrugated base paper and around 20% in packaging materials. Through subsidiaries including Taerim Paper, Taerim Packaging, Jeonju Paper, and Jeonju One Power, the division operates a vertically integrated model covering corrugated base paper, packaging production, and energy generation, supported by 13 production facilities nationwide.

The business has further strengthened its portfolio following the acquisition of Jeonju Paper, expanding into diverse paper products such as newspaper, publication paper, and specialty paper. Operational synergies between Taerim Paper and Jeonju Paper have improved production efficiency, while joint procurement and integrated logistics networks enhance cost competitiveness.

While Global Sae-A is exploring market interest, the company emphasized that a transaction would only proceed if it reflects an appropriate valuation that enhances corporate value. Industry estimates suggest the combined paper division could be valued at around 2 trillion won if all assets are included in a potential sale.