This study is initiated for investigating the economic utilizations of forest biomass generated by thining program of government. Korean government has made various policies for inducing producers to make wood pellets using forest biomass and consumer to use wood pellet as an energy source. However, the government has not considered other alternative use of forest biomass other than wood pellet as a policy targe. This study compares the economic values of forest biomass when it is used for wood pellet and those when it used for pulp. For the comparison, market equilibrium mechanisms for wood pellet and pulp are identified, the simulation models are set, and the wood pellet demand is estimated. The simulations for the comparisons of the economic values indicate that utilizing forest biomass as a material for pulp creates more import-substitution effects and consumer surplus compared to the case when it is used for wood pellet. These analytical results imply that government needs to prepare other policy tools that provide an incentive for utilizing the forest biomass as a material for pulp.