[Edaily Marketin Reporter KIM YEON-SEO ] Samyang Packaging (A-), a PET packaging specialist under the Samyang Group, is returning to the public corporate bond market for the first time in two years. The company plans to raise 60 billion won to repay corporate bonds maturing this September.

According to investment banking (IB) industry sources on the 5th, Samyang Packaging is preparing to issue 60 billion won worth of 2-year public corporate bonds. The company plans to conduct a bookbuilding process targeting institutional investors later this month and issue the bonds in September. NH Investment & Securities and KB Securities are serving as lead underwriters.

The proceeds are expected to be used to repay existing corporate bonds. On September 6, 2024, Samyang Packaging issued 60 billion won in 2-year bonds with a coupon rate of 3.68% per annum. These bonds are set to mature on September 4 of this year. If this issuance is completed as planned, the corporate bonds issued two years ago will be refinanced with new corporate bonds of the same size.

Samyang Packaging Reports 40.9% Increase in First-Half Operating Profit

Samyang Packaging achieved both revenue growth and improved profitability in the

first half

of this year. Consolidated operating profit for the first half reached 17.5 billion won, a 40.9% increase compared to the same period last year. During the same period, net income rose 30.5% to 12.2 billion won, while revenue increased 6.0% to 224.8 billion won.

Second-quarter revenue totaled 131.5 billion won, a 9.5% increase year-over-year. Operating profit rose 21.4% to 17.0 billion won.

The improvement in performance was driven by increased sales resulting from the identification of new demand in the container and aseptic divisions and the expansion of the recycling business. As sales volume increased, the burden of fixed costs per unit decreased, and product price hikes along with company-wide cost efficiency measures also contributed to improved profitability.

Cumulative gross profit for the first half of the year was 43.5 billion won, an 8.2% increase compared to the same period last year. The company’s profit structure and earnings power improved, driven by expanded product sales and price increases. During the same period, selling, general, and administrative expenses (SG&A) decreased by 6.5% year-over-year to 26.0 billion won.

Samyang Packaging plans to continue building a stable foundation for profit generation by flexibly responding to market demand to expand product sales, while managing costs and selling prices and enhancing cost efficiency. Given the confirmed improvement in first-half performance this year, this is expected to serve as a positive factor in the company’s return to the public bond market for the first time in two years.

“Projected to Generate Annual Operating Cash Flow of Around 50 Billion Won”

Korea Ratings and NICE Credit Rating have assigned an ‘A-’ credit rating to Samyang Packaging’s unsecured bonds, with a ‘Stable’ outlook. An ‘A’ rating indicates excellent debt repayment capacity and a high degree of certainty regarding principal and interest payments; however, compared to higher ratings, it is more susceptible to the impact of economic and environmental changes. A ‘Stable’ outlook means there is a low probability of a credit rating change within the next one to two years.

The credit rating industry anticipates that Samyang Packaging will maintain an excellent financial structure despite the investment burden associated with upgrading its container production facilities. Samyang Packaging has been carrying out a total of 39.3 billion won in investments to upgrade its container production facilities since the end of 2024. As of the end of 2025, the planned amount of additional investment is 18.9 billion won.

There is a possibility that debt will increase in the short term while the capital expenditures are underway. However, once these investments are completed this coming September, the scale of investment is expected to return to a routine level. Analysts note that since the company can cover the investment burden with cash generated from operating activities, the likelihood of a significant deterioration in its financial structure is limited.

Bae Seong-jin, a senior researcher at Korea Corporate Rating, stated, “In the short term, borrowing is expected to increase as the investment burden persists,” but added, “Large-scale investments are expected to conclude in 2026, after which investment levels are projected to remain at a routine level.”

He continued, “Samyang Packaging is expected to generate annual operating cash flow of around 50 billion won, which will allow it to manage its investment burden,” adding, “We forecast that the company will maintain its strong financial structure despite the increased investment burden.”