South Korea’s Paper Industry Pushes Structural Transition for Sustainable Future
South Korea’s paper industry is calling for a major structural transformation to ensure long-term sustainability and global competitiveness, according to Choi Hyun-soo, Chairman of the Korea Paper Association and Chairman of Kleannara.
Speaking to reporters at the Korea Press Center in Seoul during the celebration of the 10th Paper Day, Choi emphasized that the industry must move beyond cost-cutting measures and focus on building a more efficient, sustainable, and high-value-added business model.
South Korea currently produces approximately 11 million tonnes of paper annually, generating around KRW 27 trillion in production value. The country ranks eighth globally in paper production and sixth in per capita paper consumption at 184 kilograms, with nearly 24% of its output exported to international markets.
To strengthen the industry’s future, Choi outlined four key pillars for structural transformation: AI-driven smart manufacturing, product quality differentiation, export market diversification, and enhanced value-chain collaboration. He highlighted the potential of artificial intelligence to optimize operations across the entire supply chain, from raw material procurement and production to distribution and energy management.
The industry is also focusing on developing premium paper-based products, including “K-Hygiene Products” inspired by the success of K-Beauty and K-Food. In addition, efforts are underway to expand applications for nanocellulose in cosmetics and semiconductor materials, while growing the white cardboard market by capitalizing on stricter recycling regulations being introduced in North America and Europe.
Choi noted that although South Korea lacks abundant forest resources, it has developed a strong resource-circulation system, with a paper recycling rate of approximately 89%. He described this recycling capability as a strategic national asset that supports the country’s position as one of the world’s leading paper producers.
The chairman stressed that stable and predictable government policies are essential to support industry investment. Referring to the paper straw market, he pointed out that companies that invested heavily in production facilities based on regulatory changes later faced financial difficulties when environmental assessments shifted public and policy perspectives.
“Policies, regulations, and incentives should be carefully reviewed and consistently maintained so companies can invest in facilities and research with confidence,” Choi said. He called for clearer environmental guidelines, advanced collection and sorting infrastructure, and financial support for low-carbon technology investments.
The industry also faced significant challenges during the first half of the year due to global supply chain disruptions linked to instability in the Middle East. Rising costs for pulp, energy, and maritime transportation created conditions reminiscent of the COVID-19 pandemic. According to a survey conducted by the Korea Federation of SMEs, 94.6% of respondents reported increased cost burdens, while 80.7% experienced raw material supply shortages.
At the same time, supply constraints and rising prices for petrochemical-based plastics have created new opportunities for paper products, particularly in packaging applications. Demand for paper-based alternatives has increased in sectors such as e-commerce, food packaging, and hygiene products as businesses seek more sustainable solutions.
While concerns remain about paper’s cost competitiveness as global markets stabilize, Choi believes the shift toward paper-based packaging is only beginning. He pointed to growing adoption across major e-commerce and consumer goods sectors as evidence of a long-term transition.
Looking ahead, Choi said South Korea’s paper industry aims to evolve beyond traditional manufacturing and become a “solution industry” capable of addressing challenges in packaging, logistics, biotechnology, and advanced materials through innovative paper-based technologies.