CJ CheilJedang is pursuing the sale of its starch sugar business division, according to investment banking industry sources on the 29th. The company has selected Samjong KPMG as the lead advisor for the sale process. The move follows CJ CheilJedang's organizational restructuring announced early this month, when the company stated it would divest businesses with low growth and profitability. The starch sugar business, which produces glucose, fructose, and starch syrup from corn starch for use in processed foods, represents a small portion of CJ CheilJedang's overall operations with estimated annual revenue around ₩100 billion.
CJ CheilJedang Selects Samjong KPMG for Starch Sugar Sale Process
CJ CheilJedang has selected Samjong KPMG as the lead advisor and is proceeding with the sale of its starch sugar business, according to investment banking industry sources on the 29th. A carve-out method, which involves separating the business division into a standalone legal entity, is under consideration. The starch sugar business produces glucose, fructose, and starch syrup from corn starch as raw material. These products are used as sweeteners in processed foods including soft drinks and confectionery. CJ CheilJedang has operated this business in a business-to-business (B2B) format.
CJ CheilJedang Ranks Fourth in Domestic Starch Sugar Market
The domestic starch sugar market has an oligopolistic structure with four companies—Daesang, Sajo CPK, Samyang Corporation, and CJ CheilJedang—holding over 90% market share. CJ CheilJedang ranks fourth to fifth among these companies, placing it in the lower tier. The starch sugar business is organized under the newly established "Core Materials" division created during the organizational restructuring conducted early this month. CJ CheilJedang restructured its business structure from the previous dual-division system of Food and Bio into three divisions: Lifestyle Food, Technology Materials, and Core Materials. The company officially stated it would divest businesses with low growth and profitability.
KFTC Imposes ₩747.58 Billion in Fines on Four Starch Sugar Companies
The Korea Fair Trade Commission (KFTC) voted on the 7th to impose corrective orders and fines totaling ₩747.58 billion on four starch and starch sugar manufacturers. This represents the largest fine in history for a collusion case. By company, Daesang received the largest fine at ₩234.14 billion, followed by Samyang Corporation at ₩210.34 billion, Sajo CPK at ₩200.13 billion, and CJ CheilJedang at ₩102.97 billion. According to the KFTC, CJ CheilJedang's market share in the starch sugar sector is approximately 12-13%. An industry source stated, "Given that the starch sugar business does not represent a large portion of CJ CheilJedang's overall operations and the fine has already been reflected in accounting, potential buyers could benefit from reduced burden when acquiring the starch sugar business."
Starch Sugar Business Represents Minimal Portion of CJ CheilJedang Revenue
Within CJ CheilJedang, the starch sugar business represents a minimal portion of overall operations. According to the 2025 annual report, the Food division generated revenue of ₩11.52 trillion, accounting for 42.14% of total revenue of ₩27.34 trillion. The BIO division generated ₩4.12 trillion (15.08%), and Logistics generated ₩11.70 trillion (42.78%). The starch sugar division's annual revenue is estimated at around ₩100 billion. A CJ CheilJedang representative stated, "We are reviewing various options, but nothing has been specifically confirmed."
FAQ
What is CJ CheilJedang's plan for its starch sugar business?
CJ CheilJedang is pursuing the sale of its starch sugar business division and has selected Samjong KPMG as the lead advisor for the sale process, according to investment banking industry sources on the 29th. A carve-out method is under consideration.
How much did the KFTC fine CJ CheilJedang in the starch sugar collusion case?
The Korea Fair Trade Commission voted on the 7th to impose a fine of ₩102.97 billion on CJ CheilJedang as part of a total ₩747.58 billion in fines levied on four starch and starch sugar manufacturers for collusion.
