As paper demand shrinks, Hansol, Moorim and KleanNara chart three divergent paths

Paper companies are accelerating diversification efforts as digitalization and other factors erode paper demand. KleanNara is expanding into household detergents, Hansol is pushing into semiconductors, and Moorim P&P is focused on broadening the uses of pulp. Pictured is a Moorim P&P paper factory. [Moorim P&P]

KleanNara moves into capsule and dishwasher detergents

Hansol acquires semiconductor testing parts firm for 177.2 billion won

Moorim P&P turns pulp into wet wipes, packaging and bioplastics

South Korea's paper industry, facing a prolonged decline in demand, is pursuing sharply different growth strategies. KleanNara is entering the detergent market by leveraging its existing consumer brand and distribution network, Hansol is expanding into semiconductors through large-scale acquisitions, and Moorim P&P is broadening the applications of pulp — the raw material of paper — into eco-friendly packaging and bioplastics.

Though all three face the same industry headwinds, their approaches diverge clearly. KleanNara is pursuing "adjacent expansion," stretching into lifestyle products close to its core business. Hansol is executing "non-paper M&A," acquiring companies in advanced industries far removed from papermaking. Moorim P&P is betting on "high-value pulp," finding new uses for the material it already produces.

The urgency behind these moves stems from a shrinking paper market. According to the Korea Paper Manufacturers Association, domestic printing paper output fell roughly 25 percent — from about 3.03 million tons in 2010 to about 2.26 million tons in 2024 — and slipped further to 2,083,313 tons in 2025. "The spread of electronic documents and online content has significantly reduced demand for paper used in books, workbooks and flyers," an industry official said.

Four new detergent products launched by KleanNara [KleanNara]

KleanNara enters laundry capsule detergent market

KleanNara entered the detergent market this month with the launch of three laundry capsule detergents and one dishwasher tablet, broadening its product lineup beyond the hygiene goods — toilet paper, wet wipes, sanitary pads and diapers — that have long defined the company.

The four new products are a heavy-duty odor-eliminating capsule detergent, a heavy-duty cleaning capsule detergent, an indoor-drying capsule detergent and a dishwasher tablet. Each targets a specific consumer pain point: indoor drying odors, sweat smells and everyday stains. The dishwasher tablet combines detergent and rinse-aid functions in a single product.

The strategy relies on translating KleanNara's existing brand recognition into a new category. The company can apply the brand equity and retail presence — in hypermarkets and online shopping platforms — built through its hygiene products business to the new detergent line. While the move does not repurpose paper manufacturing equipment, it diversifies a revenue base heavily concentrated in paper and hygiene goods.

Hansol is expanding into the semiconductor industry through its affiliates. Hansol Technics, the group's electrical and electronic materials unit, completed the acquisition of Will Technology, a semiconductor testing parts company, last month. Hansol Technics acquired 6,110,544 shares of Will Technology for 177.2 billion won ($121 million), securing an 83.37 percent stake.

Will Technology designs and manufactures probe cards used in testing non-memory system semiconductors. A probe card connects a semiconductor chip to testing equipment to verify its electrical characteristics and detect defects. The company supplies products for smartphone application processors and image sensors.

Hansol Technics has steadily expanded its footprint through acquisitions, including semiconductor equipment parts maker Aiwons and display and semiconductor materials recycler SI Materials. The addition of Will Technology extends its portfolio to cover semiconductor testing parts, complementing existing capabilities in equipment processing, cleaning and coating, and materials recycling.

Moorim P&P, an integrated pulp, paper and advanced materials company, signed an MOU on Tuesday with the Rural Development Administration's National Institute of Horticultural and Herbal Science and Gyeongsang National University to jointly develop an eco-friendly frost protectant using cellulose derived from natural pulp. Pictured from left: Yun Su-hyeon, head of the horticultural crops division at the National Institute of Horticultural and Herbal Science; Lee Yong-bok, dean of the College of Agriculture and Life Sciences at Gyeongsang National University; and Lim Geon, research director at Moorim. [Moorim]

Moorim expands nanocellulose into agricultural applications

Moorim P&P has chosen the path closest to its existing paper business: expanding the uses of pulp, drawing on its domestic pulp production facilities. Moorim P&P signed an MOU with the Rural Development Administration's National Institute of Horticultural and Herbal Science and Gyeongsang National University to develop an eco-friendly frost protectant using cellulose derived from natural pulp.

A frost protectant forms a protective film on the surface of fruit tree flower buds to reduce cold damage. As spring cold snaps have caused repeated harm to orchards in recent years, the technology has drawn attention as a potential tool for adapting to climate change. The product will incorporate cellulose nanofibers (CNF) extracted from the natural pulp Moorim P&P produces. CNF is an eco-friendly material made by grinding cellulose fibers down to nanometer scale; the company said its excellent insulating and durability properties are expected to protect flower buds even in low-temperature conditions.

Other paper companies are also working to reduce their reliance on printing paper. Hankuk Paper MFG is shifting its business mix away from printing paper toward coated board, corrugated board, eco-friendly packaging materials and specialty paper — moving the center of gravity within its paper operations toward segments with relatively stronger growth prospects rather than venturing into entirely new industries.

"Demand for printing paper has been declining for years due to the digital transition, and a recovery in the broader economy alone will not be enough to restore past output levels," an industry official said. "Since each paper company has different brands, equipment and financial resources, the trend of finding new revenue streams through different approaches — expanding into lifestyle products, pursuing M&A, or developing eco-friendly materials — is likely to continue."

hong@heraldcorp.com