[Edaily Reporter Kim Ji-woo ] CJ CheilJedang Corp(097950)is considering the sale of its starch division. This move is seen as an effort to divest underperforming businesses with low growth potential and profitability, and to focus its resources on future growth areas such as global food and high-value-added materials.

According to industry sources on the 28th, CJ CheilJedang Corp. is pursuing the sale of its starch division to major financial investors (FIs). A “carve-out” method—in which the division is spun off into a separate legal entity before being sold—is being discussed, and it is reported that a domestic accounting firm has been retained to advise on the sale. Industry observers estimate the sale price to be around 300 billion won.

The starch and syrup business involves processing corn to produce starch, corn syrup, glucose, and fructose. The resulting products are primarily used as raw materials for processed foods such as beverages, confectionery, and baked goods. CJ CheilJedang Corp has operated its starch and syrup business primarily through business-to-business (B2B) transactions.

CJ CheilJedang Corp.’s decision to consider selling its starch and syrup division appears to stem from its assessment that the business has relatively low growth potential and profitability. CJ CheilJedang Corp.’s market share in the domestic starch and syrup market is reported to be in the single digits, and the company is ranked fourth or fifth in the industry, behind Daesang Corporation, Samyang Corporation, and Sajo CPK.

CJ CheilJedang Corp. has also recently embarked on a business restructuring to improve performance and secure new growth engines in the global market. Earlier this month, the company reorganized its two existing business divisions—Food and Bio—into three divisions: Life, Technology, and Core Materials, and began the process of identifying non-core businesses. This strategy aims to realign its business portfolio around global K-Food and high-value-added materials businesses.

A CJ CheilJedang Corp official stated, “As part of our future innovation efforts, we are reviewing various options to boldly divest from underperforming businesses with low growth potential and profitability,” adding, “However, nothing has been finalized as of yet.”