Global Sae-A Launches Sale of Paper Division, Targets Valuation Above KRW 2 Trillion

Global Sae-A is set to formally launch the sale of its paper division as early as next week, initiating the process with the distribution of an Information Memorandum (IM) to selected bidders, according to investment banking industry sources.

The company, working with its sale manager, has already shortlisted potential buyers following the circulation of teaser letters to approximately 20 candidates earlier this month. Both strategic investors (SIs) and financial investors (FIs) are expected to participate, with several parties reportedly considering consortium structures.

Global Sae-A is understood to be targeting a valuation of at least KRW 2 trillion, citing its accumulated investments, operational scale, and market leadership. The group invested approximately KRW 1.38 trillion to build the division, including the acquisition of Tailim Paper and Packaging in 2019 and Jeonju Paper and Jeonju Won Power in 2024.

Portfolio of Market-Leading Assets

The sale includes:

• Tailim Paper and Tailim Packaging — South Korea’s leading producers of containerboard and corrugated boxes

• Jeonju Paper — the country’s top newsprint manufacturer

• Jeonju Won Power — a combined heat and power (CHP) plant providing stable earnings

Together, the division commands:

• Approximately 30% share of Korea’s containerboard market

• Around 45% share of the domestic newsprint market

• Annual production capacity of roughly 2 million tons, the largest in Korea

Profitability Mix and Valuation Drivers

While Jeonju Paper maintains market leadership in newsprint, structural decline in the segment continues to weigh on profitability. The company recorded EBITDA of about KRW 14.2 billion last year but posted an operating loss due to high depreciation.

In contrast, Jeonju Won Power has emerged as a key earnings contributor, generating EBITDA of approximately KRW 39 billion last year and KRW 42.1 billion in 2024. Market participants view the power unit’s stable cash flow as a critical factor supporting Global Sae-A’s valuation expectations.

Industry experts note that bidder confidence in leveraging Jeonju Won Power’s profitability to offset challenges in the newsprint business will be a decisive factor in determining final pricing.

Global Strategic Interest Builds

The sale is drawing attention from major global pulp and paper players, particularly those with vertically integrated supply chains and access to virgin pulp resources. These companies may seek to enhance value through grade conversion strategies—repurposing existing newsprint capacity toward higher-margin packaging or specialty paper products.

Among the potential bidders:

• Indonesia’s Sinar Mas Group, via its paper arm Asia Pulp & Paper (APP), is widely viewed as a key contender following a series of recent acquisitions in Korea

• Japan’s Oji Holdings, which has been actively pivoting toward packaging and functional materials

• China’s Nine Dragons Paper, one of the world’s largest containerboard producers

Sinar Mas, in particular, has demonstrated strong appetite for Korean assets, including the acquisition of MSS Holdings in 2024 and subsequent investments across industrial sectors.

Outlook

As Global Sae-A proceeds with the formal bidding process, the transaction is expected to test investor appetite for large-scale industrial assets amid structural shifts in global paper demand. The outcome will hinge on bidders’ ability to unlock synergies, optimize production portfolios, and reposition legacy assets for future growth.