Choi Hyun-su, head of the Korea Paper Association (chair of KleanNara), stressed that an AI-driven smart transformation and an eco-friendly shift centered on resource circulation are needed for the sustainable growth of Korea's paper industry.
On the 16th, to mark the 10th Paper Day, Choi held a press briefing at the Korea Press Center in Jung-gu, Seoul, and laid out the current state of the domestic paper industry and ways to secure future competitiveness. He said, "The paper industry must move to restructure itself by smartening production processes with AI and strengthening eco-friendly competitiveness focused on resource circulation."
Choi also reviewed the industry's strengths and the challenges facing the sector as a whole. He said, "Korea's paper industry has an industrial base with 27 trillion won in annual output and 60,000 employees, and it is a leading export industry that ships about 24% of total production," adding, "Korea ranks eighth in paper production and sixth in per capita paper consumption worldwide."
However, he assessed that the industrial environment is increasingly tough. He said a combination of factors is pressuring the sector, including global supply chain instability and higher ocean freight, raw material price volatility, rising energy expenses, economic slowdowns at home and abroad, weaker domestic demand, oversupply in some grades, and a surge in low-priced imports.
He singled out the burden of energy expenses as a key risk factor. Choi said, "The paper industry is a representative process industry with a high share of electricity and fuel use," adding, "Rising energy expenses directly affect corporations' profitability and investment capacity."
Choi emphasized that the industry must innovate its very structure to respond to these changes. He said, "Today's task cannot stop at simple expense cuts," adding, "We must shift the industrial structure to be more efficient, sustainable, and focused on high added value."
He proposed AI-based smart manufacturing as a core strategy. Choi said, "AI- and data-driven process efficiency, advancement of smart factories, and optimization of energy use are ways to secure cost competitiveness and cut carbon at the same time," emphasizing, "It is time to move beyond simple price competition and differentiate based on quality stability and eco-friendliness."
He also cited development of high value-added products and investment in future materials as key tasks. Choi said, "We need to expand research and development (R&D) and technology investment in future growth areas such as high value-added specialty papers and eco-friendly packaging, hygiene products, functional coating materials, and bio-based new materials."
He also noted the need to upgrade export strategy. Choi said, "Export expansion must also move beyond simple volume competition and shift toward presenting quality and environmental standards, functionality, and supply stability together," adding, "While boosting competitiveness in existing Asian markets, we should also expand into North America and Europe, where eco-friendly standards are tightening."
Choi assessed the growth potential of paper-based materials positively. He said, "Paper is creating new demand by broadening its applications across packaging, hygiene paper, industrial paper, and functional materials," adding, "The growth of e-commerce, stronger restrictions on plastic use, and the spread of carbon-neutral policies are providing new opportunities for the paper-based materials industry."
Choi went on to say, "The paper industry is familiar, but it is by no means old," emphasizing, "Paper is the most practical circular resource and an eco-friendly material that will play a larger role ahead."
The Korea Paper Association also released the results of a "nationwide perception change survey on paper," commissioned to Embrain, a polling specialist. According to the survey, 92.9% of respondents recognized that "paper is a renewable eco-friendly resource." In addition, 87.8% agreed that plastic consumption should be reduced and the use of eco-friendly alternative materials such as paper should be expanded.
The most urgent areas for expanding paper materials were cited as parcel packaging (60.4%) and distribution packaging (59.8%). The association said this shows that, as e-commerce grows and packaging use increases, consumer expectations for paper-based eco-friendly materials are rising.