SMEs

"Paper Industry Must Boost Competitiveness Through AI Smart Factories and High-Value-Added Products"

Press Conference with Choi Hyun-soo, Chairman of the Korea Paper Association Establishing a Fair Competitive Order, Targeting North American and European Markets Transitioning Business Structure to AI, Biotechnology, and Eco-Friendly Packaging Materials

[Edaily Reporter Kim Young-hwan] The domestic paper industry has presented a blueprint to accelerate its transition into an eco-friendly industry based on fair competition and resource circulation.

Choi Hyun-soo, Chairman of the Korea Paper Association, said at a press conference held at the Korea Press Center in Jung-gu, Seoul, on the 16th, “The paper industry is familiar, but it is by no means an outdated industry,” adding, “It must evolve into a solution industry that addresses issues in the packaging, logistics, bio, and advanced materials sectors.”
Choi Hyun-soo, Chairman of the Korea Paper Association (Photo: Korea Paper Association)

At the event, Chairman Choi outlined three key directions for the future of the paper industry: △ strengthening its role as a foundational industry responsible for the industrial supply chain; △ securing eco-friendly competitiveness centered on resource circulation; and △ enhancing cost competitiveness through AI and digital transformation.

He emphasized, “Korea’s paper industry is the world’s eighth-largest producer and a 27 trillion won industry,” adding, “The growth of e-commerce, expanding demand for plastic alternatives, and the trend toward carbon neutrality are creating new opportunities for paper-based materials.”

Chairman Choi stressed the need to secure competitiveness by shifting the business structure toward high-value-added sectors such as eco-friendly packaging materials, specialty papers, and bio-based materials, and by expanding the establishment of AI-based smart factories to strengthen manufacturing capabilities. He stated, “We must enhance production, logistics, and energy efficiency through AI and data-driven smart factories to strengthen our manufacturing competitiveness,” adding, “We must shift the industry structure away from simple price competition toward high-value-added products such as specialty papers, eco-friendly packaging materials, hygiene products, and new bio-materials.”

Regarding export strategies, he emphasized the need to target North American and European markets beyond the traditional Asian-centric market. Chairman Choi stated, “Tightening environmental regulations are not a crisis but a new opportunity for entry,” adding, “We must expand into the global market based on our competitiveness in recycling rates and eco-friendly certifications.”

He expressed regret over the recent decision by the Fair Trade Commission to impose fines on some printing paper companies for price-fixing. Chairman Choi said, “As the chairman of the Korea Paper Association, I find it deeply regrettable that such an incident occurred,” adding, “Fair competition is an essential structure for the benefit of consumers and industrial development.” He further added, “We must identify the root cause of why this happened and conduct a thorough review from scratch to ensure it never happens again,” noting, “There must have been a clear reason, and we need to find a different solution.”

Regarding the government’s ongoing public sanitary pad support program, he expressed agreement with its social necessity. #CleanNation, led by Chairman Choi, has been selected as an official supplier for the “Public Sanitary Pad Support Pilot Project” promoted by the Ministry of Gender Equality and Family. He explained, “When support is needed for the public good, companies must naturally participate,” noting, “In fact, not only manufacturers but also distributors are participating to continue this support.” However, he noted, “Consumer demands are very diverse, extending beyond price to include absorbency, comfort, and softness,” adding, “It is the role of companies to provide choices that can meet these varied needs.”

He also called for consistency in eco-friendly policies. Citing paper straws as a prime example, Chairman Choi emphasized, “There have been cases where companies made investment decisions during policy transitions only to face difficulties due to unexpected environmental assessment results,” stressing that “predictable eco-friendly guidelines are necessary so that companies can invest with confidence.”

He identified recycling competitiveness as the greatest strength of the domestic paper industry. Chairman Choi said, “The domestic paper recycling rate stands at 89%, which is among the highest in the world,” adding, “Given our country’s scarcity of forest resources, resource circulation is the area where we must prioritize and focus our efforts.” He also suggested, “We should not focus solely on recycling rate figures but rather develop in a direction that improves the quality of waste paper and enhances the collection and sorting systems,” adding, “The government needs to establish a mid- to long-term roadmap and make institutional improvements.”

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