Global Sia Group announced on the 15th that its paper affiliates' cumulative operating profit recorded 73 billion won in May, up 100% from the same period last year.
Global Sia Group has Tarim Paper, Tarim Packaging, and Jeonju Paper as its paper affiliates. They include Jeonju One Power Co., an energy generation subsidiary of Jeonju Paper, Jeonju Power Co., and Donglim Logistics Co., a logistics company. The cumulative sales of these companies in the first five months of this year amounted to 904 billion won, up 7% year-on-year. Operating profit is estimated to be around 73 billion won, up about 100% year-on-year.
Regarding the background of the increase in operating profit, a Global SEA Group official said, "We have increased export volume, increased export price, exchange of manpower and technology, economy of scale, improved cost structure, and development of eco-friendly high value-added products."
Taerim Paper and Jeonju Paper clearly separated the roles of each factory based on facility characteristics and product competitiveness to maximize efficiency. Taerim Paper focuses on mass production of high-strength surface paper and medium- and high-quality paper, and Jeonju Paper has transformed its business structure into the largest corrugated paper production capacity in Korea based on a single plant since its incorporation into Global Sia Group in 2024.
In addition, the two companies are expanding exchanges of technology and know-how by cross-arranging key production and sales personnel. Taerim Paper's corrugated paper production technology has also accelerated the process stabilization of Jeonju Paper. It is also creating economic effects of scale in the raw material purchase and logistics sector. An official from Global SEA Group said, "We have secured unit price competitiveness through joint purchase of raw materials, and we are reducing overall logistics costs by having the largest number of production bases among domestic operators and linking logistics networks nationwide."
Due to the synergy effect of the paper affiliates within the group, Global Sia Group forecasts annual operating profit of more than KRW 1,900 to 200 billion and sales of KRW 2.2 trillion to KRW 2.3 trillion this year. Operating profit is up more than 200% and sales are up more than 10% from last year.
"We operate a vertical business model and are improving efficiency and stability through close cooperation between the corrugated support and packaging sectors," a Global SEA Group official said. "We have also diversified our business portfolio to various paper types such as corrugated paper, newspaper, publication paper, and high-end paper." He also added, "Through the increase in demand for paper-based packaging materials and the growth of the e-commerce industry, the corrugated support and packaging market is expected to grow at an annual average of 5-6% by 2030."
