Global Sia Group Halts Planned Sale of Paper Business Amid Improved Market Outlook

Global Sia Group has decided to suspend the planned sale of its paper business, citing improved long-term growth prospects for the paper and corrugated packaging industry.

According to investment banking industry sources, the group halted the divestment process after distributing an information memorandum last month and receiving preliminary bids earlier this month.

The proposed sale included corrugated paper and packaging businesses Tarim Paper and Tarim Packaging, newspaper and corrugated paper producer Jeonju Paper, energy subsidiaries Jeonju Power and Jeonju Power, and logistics company Dongrim Logistics.

The sale was expected to value the business at approximately 2 trillion won. Industry sources said three to four financial investors participated in the preliminary bidding process.

The decision follows an improvement in the performance of the group's paper operations. According to the report, the paper affiliates generated operating profit of approximately 70 billion won during the first five months of 2026, while earnings before interest, taxes, depreciation, and amortization (EBITDA) exceeded 100 billion won.

The group attributed the performance improvement to increased export volumes, higher selling prices, production structure optimization, cooperation among affiliates through personnel and technology exchanges, and joint procurement of raw materials.

Industry analysts said the decision reflects confidence in the long-term prospects of the paper business, supported by continued growth in e-commerce and increasing demand for recyclable paper-based packaging driven by tighter environmental regulations and broader adoption of environmental, social, and governance (ESG) practices.

The group's paper business operates an integrated production structure spanning corrugated paper manufacturing, packaging production, and energy supply, which analysts said provides greater resilience to fluctuations in raw material costs and changing market conditions.

According to industry estimates cited in the report, Global Sia Group's paper affiliates are expected to generate approximately 200 billion won in operating profit during 2026.

The group previously stated that while a sale of the paper business remained one option for enhancing corporate value at an appropriate valuation, it would not proceed with a transaction hastily.