This article was displayed on the ChosunBiz MoneyMove (MM) site at 3:31 p.m. on Jan. 19, 2026.
Global Sae-A has put its paper business up for sale as a whole, but observers say it will be difficult to sell at the price it wants because of poor performance. Global Sae-A needs a cash injection to reduce borrowing fund that swelled from aggressive mergers and acquisitions (M&A).
On the 19th, investment banking (IB) sources said Global Sae-A has tentatively appointed UBS as the lead adviser for the sale of its paper unit and is seeking potential buyers. The assets for sale include Taelim Paper and Tailim Packaging, acquired in 2020 through subsidiary Sae-A Trading, and related businesses acquired in 2023 through T&J Investment, a 100% subsidiary of Taelim Paper, including Jeonju Paper and Jeonju Won Power.
This year the paper division's earnings before interest, taxes, depreciation and amortization (EBITDA) are forecast at 180 billion to 200 billion won. The seller is seeking a price around 2 trillion won by applying a 10x EV/EBITDA multiple. But it is unclear whether it can obtain the desired corporate value. While overseas paper companies trade at about a 10x multiple, domestic paper companies average only about 5.5x.
Worse still, results are on the decline. Taelim Paper, acquired in 2019 from IMM Private Equity, had operating profit of 77.2 billion won at the time but fell to 24.7 billion won in 2024. Its subsidiary Tailim Packaging's operating loss of 16.5 billion won was a major factor. Jeonju Paper, acquired in 2023 from Morgan Stanley Private Equity, also saw its operating loss widen to 18 billion won last year.
Global Sae-A is said to have left open the possibility of lowering its price expectations given the weakening results. An IB industry official said, "Strategic investors (SI) that jumped into past paper company bidding rounds are also considering selling rather than additional acquisitions amid the downturn in the paper sector," adding, "Global Sa-A, which is in a hurry to sell, will likely not have high expectations for price."
Potential buyers include global strategic investors (SI). Domestic rival paper companies are not immune to the downturn, so even forming a consortium with financial investors (FI) may not provide much acquisition capacity, analysts say. Strategic investors that previously entered domestic paper company bids include China Paper Co. Shanning, U.S. paper company International Paper and WestRock Paper.
Global Sae-A moved to sell the paper business because of increased borrowing fund. Through many M&A deals during a low interest rate period, Global Sae-A expanded its business scope and total borrowing fund rose to 2.4 trillion won. Starting with the acquisition of Sae-A STX Entech in 2018, it acquired Tailim Packaging (2020), Ssangyong E&C (2022) and Jeonju Paper (2023) in succession. The acquisition of Sae-A STX Entech is the biggest failure. It underwent court-ordered rehabilitation and is now undergoing liquidation procedures.