Folders and subfolders are converted into tags. Let's assume that the folder "Google" has a subfolder called "Blogs". The two folders are converted into two tags: "Google" and "Google > Blogs", while the bookmarks from the "Blogs" subfolders get both tags.
For now, there's no way to sync Google Save with Chrome bookmarks and the Bookmark Manager extension doesn't integrate with Google Save, even if they're closely related.
{ Thanks, Mukil Elango. }