South Korea’s paper industry is accelerating efforts to transform its business model, with industry leaders calling for greater adoption of artificial intelligence, higher-value products, export diversification, and stronger recycling capabilities to secure long-term competitiveness.

Speaking during the celebration of the country’s 10th Paper Day, Choi Hyun Soo, Chairman of the Korea Paper Association, outlined a strategic roadmap aimed at repositioning the sector for future growth.

Industry Remains a Global Paper Producer

South Korea remains one of the world’s leading paper-producing nations.

According to industry data:

• 📄 Annual paper production reaches approximately 11 million tonnes
• 💰 Industry output is valued at around KRW 27 trillion
• 🌍 South Korea ranks 8th globally in paper production
• 📦 Around 24% of production is exported
• 👤 Per capita paper consumption stands at 184 kg, ranking sixth worldwide

Despite limited domestic forest resources, the country has built a globally competitive paper industry supported by strong recycling infrastructure.

Four Pillars of Industry Transformation

Chairman Choi identified four strategic priorities for the next stage of development:

1. AI-Powered Manufacturing

The industry plans to expand artificial intelligence applications across:

• Raw material procurement
• Production management
• Logistics operations
• Energy optimization
• Supply chain efficiency

AI is expected to improve productivity while reducing operational costs.

2. Quality Differentiation

Inspired by the success of K-Beauty and K-Food, the sector aims to develop premium K-Hygiene Products and specialized paper solutions designed for global markets.

3. Advanced Material Development

New growth opportunities are emerging in:

• Nanocellulose materials
• Cosmetic applications
• Semiconductor materials
• Bio-based innovations

These higher-value segments could help reduce dependence on traditional paper products.

4. Export Market Diversification

The industry also plans to expand exports while benefiting from stricter packaging and recycling regulations being introduced in Europe and North America.

Recycling Becomes Strategic Advantage

Chairman Choi highlighted South Korea’s 89% paper recycling rate as a key competitive strength.

Given the country’s limited forest resources, he argued that circular economy performance should be treated as a national strategic asset.

The industry believes strong recycling infrastructure can help maintain South Korea’s position among the world’s leading paper producers while supporting sustainability goals.

Industry Calls for Stable Policy Framework

Choi also urged policymakers to provide long-term regulatory certainty.

He cited previous investments in paper straw production that later faced challenges as environmental debates shifted and regulations evolved.

According to the industry, businesses require:

• Predictable environmental regulations
• Stable investment conditions
• Improved collection and sorting infrastructure
• Financial support for low-carbon technologies
• Consistent sustainability policies

Packaging Demand Supports Future Outlook

The industry faced significant supply-chain disruptions during the first half of 2026 due to geopolitical instability and rising raw material costs.

However, higher plastic costs also encouraged greater adoption of paper-based alternatives in sectors such as:

• E-commerce packaging
• Food packaging
• Hygiene products
• Consumer goods packaging

South Korean companies including major online retailers have increasingly adopted paper packaging solutions as part of broader sustainability initiatives.

Industry Outlook

The Korean paper sector is seeking to move beyond traditional manufacturing and position itself as a provider of solutions for packaging, logistics, advanced materials, and bio-based products.

As demand for sustainable materials continues to grow globally, industry leaders believe paper can play a much broader role in future industrial and consumer applications.

Source: Korea Paper Association

Last Updated on 17/06/2026 by Jota Machinery