Because wastepaper is traded by weight, the price changes significantly if moisture is mixed in. As conflicts over moisture content in wastepaper kept recurring between the raw materials industry and the paper industry, the Ministry of Environment made the installation of "moisture meters" mandatory in 2021.
However, four years after the rollout, moisture meters are effectively being left idle in the field. In the industry, there is a growing call for the Ministry of Environment, which led the installation mandate, to step in to ensure effectiveness.
According to the paper industry on the 19th, as of October this year, 23 of the 27 business sites subject to moisture meter installation had completed installation, but 21 of them were unable to use the equipment. The utilization rate is less than 10%.
A moisture meter is a device that measures how much moisture and foreign matter are in wastepaper raw materials. It emits electromagnetic waves into compressed wastepaper to measure internal moisture content. After the Ministry of Environment's mandate on moisture meters in Nov. 2021, the paper industry spent about 15 billion won to equip sites nationwide with the devices.
Behind the mandatory use of moisture meters is a "price conflict" between the raw materials industry and the paper industry.
Wastepaper is distributed in the order of junk shop → middle dealer → compactor → paper company. When a junk shop collects wastepaper and sends it to a middle dealer, the middle dealer purchases it and passes it to a compactor, and finally the compactor processes it into cubes and sells the raw material to the paper company.
In this process, some compactors sprayed water on paper to increase the weight, engaging in "water addition" to gain unfair profit, so paper companies countered by applying lower unit prices to raw materials with high moisture content. As such conflicts repeated, distrust deepened on both sides over price negotiations.
Moisture meters were introduced to resolve this. The aim was to set fair prices based on objective figures. At the time, the raw materials industry and the paper industry were said to have agreed on the need for moisture meters.
But due to technical limits, moisture meters have been effectively left idle for the four years since installation. Moisture meters measure moisture using electromagnetic waves, but the transmission rate varies depending on the size of the wastepaper cube and the compression strength, causing inconsistent readings.
An official in the paper industry said, "The readings fluctuate, so they cannot be used as a transaction standard," and noted, "The process of transporting paper raw materials has only become more complicated because of moisture meters that are not used."
The industry argues that the Ministry of Environment must enhance the effectiveness of moisture meters. A source in the raw materials industry said, "Because interests diverge immediately depending on the moisture measurement results, it is difficult to set standards through industry self-agreement alone," and argued, "The Ministry of Environment should work with the Korean Agency for Technology and Standards to present official measurement standards."
Standardizing specifications is being discussed as a concrete method. Another paper industry official said, "Because the brand of compression machines differs from compactor to compactor, it is difficult to match the pressure exactly the same," but added, "If the government at least standardizes width, length, and height, the effectiveness of moisture meters would improve."
The industry also stresses the need to strengthen oversight of small junk shops. Water addition, which mixes water into wastepaper, occurs frequently at the junk shop stage as well. In such cases, compactors end up purchasing raw materials at higher prices, and the burden is passed on to paper companies, perpetuating a vicious cycle.
An official at the Ministry of Climate, Energy and Environment said, "Price fluctuations based on the moisture content of wastepaper are linked to the overall pricing system for wastepaper, making it difficult for the government to directly mediate. It seems preferable for companies to adjust reasonable prices through mutual consultation," while adding, "We will discuss with the industry and review whether there are areas that need improvement."