Global Sae-A decided to focus on strengthening business competitiveness instead of selling its paper affiliates.
According to Global Sae-A on the 29th, multiple investment banks (IB) proposed the possibility of a bulk sale of its paper affiliates early this year. Global Sae-A then reviewed a potential sale with prospective buyers but ultimately decided to maintain its holdings.
The decision reflects the view that there is ample mid- to long-term growth potential as performance improves at paper affiliates such as Tailim Paper, Tailim Packaging, and Jeonju Paper, as well as Jeonju One Power, Jeonju Power, and Donglim Logistics, and integration synergies among affiliates become visible.
In fact, cumulative sales at the paper affiliates from January to May this year came to about 904 billion won, up about 7% from the same period last year. Operating profit was 73 billion won, and EBITDA (earnings before interest, taxes, depreciation and amortization) was 110 billion won on a preliminary basis. Those figures are up more than 100% and more than 50%, respectively, from a year earlier.
The group projected this year's sales at the paper affiliates at 2.2 trillion–2.3 trillion won, operating profit at 190 billion–200 billion won, and EBITDA at 280 billion–300 billion won. Compared with last year, sales would be up more than 10%, operating profit about 200%, and EBITDA more than 80%.
In particular, Jeonju Paper is expected to post its best results since changing to its current name in 2008. Jeonju Paper, which had been in the red before being acquired by Global Sae-A, was brought under group affiliate Tailim Paper in 2024 and, after restructuring and work-process innovation, turned profitable in January.
Tailim Paper and Jeonju Paper adopted a product-mix strategy that differentiates production items based on each plant's equipment characteristics and product competitiveness. They cross-assigned key personnel in production and sales to expand the sharing of technology and experience. Through joint purchasing of materials and supplies and integrated logistics operations, they enhanced expense competitiveness and also improved logistics efficiency by leveraging nationwide production bases and logistics networks.
A Global Sae-A official said, "From the outset, our position was to make a comprehensive judgment on whether to sell with the top priority on enhancing the overall domestic paper industry and corporate value," adding, "Based on our assessment at this point, we decided to halt the sale review with confidence that the group's paper affiliates can solidify their No. 1 position in the industry on the back of structural growth."