Moorim Group, marking its 70th anniversary, stands at a crossroads as it shifts to a third-generation Oner-led system.
At Moorim, Chief Executive Lee Do-gyun (48), the third-generation Oner, oversees overall management, while his father, Chairman Lee Dong-uk (78), leads the group with him. But as digital transformation structurally shrinks the traditional paper market, performance has slowed at key affiliates such as Moorim Paper. Observers say the group is in a transitional phase where it must firmly establish the third-generation management system.
◇ Lead shareholder Lee Do-gyun directs the group from the top of the holding company
Moorim Group was launched when the late founder Lee Mu-il established Moorim Paper co. (now Moorim SP) in 1956 as the group's origin. The group now has a governance structure with holding company Moorim SP at the top, with Moorim SP controlling the printing paper manufacturing affiliate Moorim Paper, and Moorim Paper owning the pulp and paper manufacturing affiliate Moorim P&P.
CEO Lee Do-gyun is the largest shareholder, holding 21.37% of Moorim SP. Chairman Lee Dong-uk holds 20.84% of Moorim SP, and Lee's younger brother, Lee Dong-geun, also holds 19.20%. The Oner family's combined holding in the holding company is 61.41%, forming a solid governance structure.
Moorim SP holds 19.65% of Moorim Paper, Chairman Lee Dong-uk holds 18.93%, and CEO Lee Do-gyun holds 12.31%. Moorim P&P is 66.97% owned by Moorim Paper.
After graduating from New York University with a degree in business administration, CEO Lee Do-gyun served in key group posts including head of strategic planning at Moorim SP, chief strategy officer at Moorim Paper, and head of the paper business division. Since 2020, he has concurrently served as CEO of three entities—Moorim SP, Moorim Paper, and Moorim P&P—overseeing the group as a whole. He is also chair of the Moorim SP board.
Lee's immediate task is to improve performance at the group's core affiliates.
Moorim Paper posted sales of 1.2668 trillion won and operating profit of 5.9 billion won last year. Sales fell 8.5% from a year earlier, and operating profit plunged 93.3%.
Moorim P&P swung to an operating loss of 24.4 billion won last year, while sales for the same period fell 9.9% to 731.6 billion won.
Falling demand for printing paper due to digitalization and lower international pulp prices hurt profitability. CEO Lee Do-gyun has moved to secure growth engines by developing eco-friendly paper and expanding into packaging businesses such as cosmetics and food packaging.
◇ Third-generation equity succession... phased gifting centered on the holding company
Equity succession is emerging as a mid- to long-term task alongside management performance. Some say succession is not urgent because Chairman Lee Dong-uk remains involved in management, but a mid- to long-term roadmap is unavoidable.
The most likely scenario is phased gifting centered on the holding company. Chairman Lee Dong-uk would transfer his 20.84% equity in Moorim SP to CEO Lee Do-gyun in installments over several years. Lee is already the largest shareholder (21.37%), but securing additional equity would further strengthen control. The process will likely be spread over years to distribute the tax burden.
A restructuring of the holding-company structure is also being discussed. Centered on Moorim SP, the group could simplify cross-equity among affiliates or clarify Lee's control through mergers or comprehensive share swaps.
An industry official said, "CEO Lee Do-gyun needs to prove his management capability through better results to strengthen the rationale for succession," adding, "The transfer of holding company equity is only a matter of time, but in the end, the market will judge the third-generation system by its performance."