The most urgent task for the domestic paper industry is to secure the sustainability of the industry.
Choi Hyun-soo, chairman of the Hankuk Paper Association, warned of the crisis in the domestic paper industry and emphasized that "we must achieve innovation across the entire industrial ecosystem beyond technological innovation."
The association held a ceremony to commemorate 'Paper Day' on the 12th at the Press Center in Jung-gu, Seoul. This was a large event held 100 days after Chairman Choi took office as the head of the association on February 25. He met with reporters that day to share his management philosophy related to leadership in communication and convergence, as well as eco-friendliness and digital transformation, and to discuss growth strategies for the domestic paper industry.
Chairman Choi is also the owner-manager leading KLEANNARA, one of the 'big three' in the domestic paper industry. He has been leading KLEANNARA since 2019, following in the footsteps of his late grandfather, Choi Hwa-sik, the founder, and his father, Choi Byeong-min, chairman. The paper association has also had all three generations represented in the role of chairman.
Chairman Choi also obtained the title of the first female chair in the 73-year history of the association. He said, "Having grown up in a family that has been involved in the paper industry for three generations, the paper industry is a part of my life," adding, "The title of the first female chair is another name for responsibility, and I will reflect diverse voices."
He also emphasized, "I will strive to make the paper industry a 'game changer' that leads Korea's industry, based on eco-friendly innovation, digital transformation utilizing technologies like AI, and strengthening global capabilities." He added, "In 10 years, the Korean paper industry must be redefined as a new industry that merges with IT and bio sectors." The following is a Q&A with Chairman Choi.
―What did you emphasize first after your appointment as chairman of the paper association?
"As the most urgent task for the paper industry, we need to secure the sustainability of the industry. I held regular practical meetings with major corporations to establish necessary tasks and strengthened the organizational capacity of the association to support them. Now is an era that requires leadership in communication and convergence. In the midst of rapid changes, I will focus on listening and inclusion as core keywords, enabling the manufacturing industry to transition flexibly in line with the era's flow."
―There is a perception that the paper industry seems somewhat old-fashioned.
"That is not the case. Just looking at its history of over 120 years, the paper industry has played an important role in everyday life and across various industries for a long time. It continues to do so. Paper is not just an old resource, but a material that satisfies human senses and has unique physical properties that cannot be replaced digitally. Based on these characteristics, the use of paper is expanding into various industrial fields.
Moreover, paper has growth potential to merge with various industries such as electronics, bio, and hygiene through the redefinition of 'high-tech material.' Like the case in neighboring Japan, paper companies need to consider expanding into new materials, energy, and biochemicals. I believe this is the new change and innovation required for the growth of domestic manufacturing.
―It has been 100 days since your appointment. What are the achievements?
"It is still too early to talk about achievements. However, I continue to strive to ensure that the paper industry becomes a game changer leading Korean industry. The paper industry is experiencing a structural crisis due to environmental regulations and reduced demand. Beyond simple technological innovation, a shift in thinking is needed to change the entire industrial ecosystem. I have presented three growth directions: eco-friendly innovation, digital transformation, and strengthening global capabilities, and I am preparing various execution roadmaps."
―The domestic paper industry has entered overseas markets such as the U.S. What are the strategies to respond to the tariff bomb from Trump?
"Exports to the U.S., particularly in printing paper, whiteboard paper, and specialty papers (thermal papers), make up a significant portion. Based on last year's figures, the export value of paper products to the U.S. exceeded 1 trillion won. The U.S. is an important export market for domestic paper companies, so it is true that we are concerned about the tariff policy of the Trump administration.
In response, the paper association is actively cooperating with the government to develop measures and is sharing various arguments and information to minimize the imposition of tariffs. It is important to note that the trade structure between the U.S. and Korea in the paper industry is complementary. The U.S. focuses on raw materials and specialty products, while Korea primarily exports items like printing paper, where the U.S. has a low self-sufficiency rate.
―What are your plans for digital transformation?
"Innovating management systems through digital transformation in the paper industry is extremely important. Digital transformation across management—utilizing technologies such as AI, the Internet of Things (IoT), and big data for smart factories and predictive maintenance systems, as well as in raw material procurement, production, logistics, and customer management—will be the core of industrial competitiveness, not just a simple cost reduction."
―What are the weaknesses and strengths of the domestic paper industry?
"Korea does not have a suitable environment for the paper industry to be competitive. There is an absolute lack of forest resources, and geographically, it is situated in a temperate climate zone, requiring about 30 years of cultivation to use effectively. This is comparatively less economically feasible than tropical reforestation that can be harvested in about 7 years. For these reasons, the high dependence on foreign pulp, along with high labor costs and increased environmental levies, are weaknesses compared to major competitors like China and Indonesia.
―You have turned weaknesses into strengths.
"The reason we have managed to rise to become the eighth largest paper producer in the world today is due to our competitive edge in quality and world-class paper recycling technology. Last year, Korea produced 11 million tons of paper, of which about 80% was recycled paper. Although we have limited forest resources, changes in housing forms to apartments and multi-family housing have improved the paper resource (waste paper) collection system. This is not the end. We must further solidify our identity as an eco-friendly industry through technological innovation. We need to create new markets and new demands by developing high-value-added materials such as eco-friendly packaging to replace plastic, functional specialty paper, and cellulose nanofibers (CNF)."
―You have also gained the title of the first female chair in the history of the paper association.
"I believe this title is a symbol that the flow of the industry is changing rather than a personal honor. Having grown up in a family that has been involved in the paper industry for three generations, it has been a part of my life. The title of the first female chair is another name for responsibility, and I will work to ensure that diverse voices and perspectives are reflected. I will strive to communicate the value of the paper industry to younger generations, including the MZ generation, and focus on attracting young talent. I will pioneer the 'K-paper era' through the establishment of identity as an eco-friendly industry, agile responses to changes in demand structure, and active export expansion.