Hankuk Paper MFG

Korea PTG (Korea Paper), founded in 1958, is a comprehensive paper manufacturer that absorbed board-specialist Seha in August 2023, giving it a two-pillar structure of printing paper and packaging (paperboard) businesses.

The printing paper division is the sole domestic producer of copy paper, marketed under the 'miilk' brand alongside the premium copy paper 'Silk,' and it also produces woodfree paper and art paper.

The packaging division makes paperboard products such as SC Manila board and Ivory board supplied to the confectionery, pharmaceutical, and cosmetics packaging markets, with the eco-friendly paper packaging product 'Green Shield' used by clients including Lotte Cinema, BHC Chicken, Ourhome, Hyundai Department Store, Crown Confectionery, and Korean Air.

Its core production base, the Hyeongpung plant, generates roughly KRW 185.5 billion in annual revenue, about 23% of total company sales. In North America the company maintains a global network centered on its U.S. subsidiary to build brand recognition and develop new demand.

In the domestic paperboard market Hansol Paper holds the largest share, followed by Kkeutan Nara, with Korea PTG joining the upper tier of competitors through the Seha merger. The printing paper market faces structural pressure from declining demand tied to smart device penetration and digital transformation.

The largest shareholder is Haesung Industries, which holds an 84.69% stake, placing the company within the Haesung Group governance structure.

On an annual basis, 2023 revenue reflecting the Seha merger effect expanded sharply to KRW 712.0 billion from KRW 227.3 billion in 2022, but one-off merger-related factors contributed to a net loss of KRW 66.6 billion.

In 2024, profitability recovered with revenue of KRW 792.1 billion and operating profit of KRW 19.3 billion (a 2.4% operating margin), and the company swung to a net profit of KRW 4.1 billion.

However, in 2025 revenue fell 4.8% to KRW 753.7 billion, operating profit shrank to KRW 3.1 billion with the operating margin narrowing to 0.4%, and the company again posted a net loss of KRW 33.5 billion.

This resulted from a combination of a full production halt following a fatal accident at the Hyeongpung plant, higher labor costs tied to expanded ordinary wage calculations, the impact of U.S. tariffs, and a roughly KRW 41.7 billion impairment charge in the packaging division.

By quarter, operating profit collapsed to KRW 190 million in the third quarter of 2025, and the fourth quarter saw an operating loss of KRW 3.26 billion alongside a massive net loss of KRW 39.1 billion, clearly showing when the impairment was booked.

In the first quarter of 2026, revenue reached KRW 199.0 billion and operating profit KRW 4.56 billion, an improvement at the operating level, yet the net loss widened to KRW 47.6 billion, suggesting non-operating factors had a significant impact.

The second quarter of 2026 showed a clear improvement with revenue of KRW 220.4 billion (up 14.8%) and operating profit of KRW 4.68 billion (up 131.9%), and net income turned positive at KRW 1.15 billion.

The company attributed these gains to a recovery in the printing paper business, the packaging division turning profitable, profitability-focused operations, and improved price competitiveness.

That said, cumulative controlling-shareholder net income across the most recent four quarters from the third quarter of 2025 through the second quarter of 2026 remains deeply in loss territory, indicating the effects of the earlier large losses have not fully unwound.

The domestic printing paper market faces structural contraction pressure from declining demand linked to smart device penetration and digital transformation, with intense competition making it difficult to defend prices.

In contrast, the paperboard (packaging) market is viewed as having growth potential, driven by e-commerce expansion and rising demand for eco-friendly packaging.

In the domestic paperboard market, Hansol Paper holds the largest share, followed by Kkeutan Nara, with Korea PTG having joined the upper tier of competitors through the Seha merger.

Fluctuations in pulp prices, exchange rates, and changes in U.S. tariff policy are variables that directly affect cost structure and export profitability.

An industry source noted that structural contraction in the printing paper market, compounded by company-specific setbacks, can amplify earnings shocks, adding that the pace of expanding eco-friendly new products will determine future sustainability.

Competitor Hansol Paper is expanding its paperboard capacity, a trend that is also intensifying competition within the packaging market.

The company stated it plans to strengthen its market push in the second half around high-value-added product lines, including the eco-friendly packaging products Green Shield and G-Flex and the premium pulp-based packaging paper 'Case Beauty.' G-Flex, a substitute for flexible plastic packaging, is scheduled for launch as early as October 2026, targeting demand for a shift toward eco-friendly packaging.

Green Shield, launched in 2024, is already being used in packaging for products from multiple major clients and generating new revenue, making the pace of follow-on product adoption a point of interest.

The company indicated it will respond quickly to market needs through field-focused sales activities such as customer seminars and process innovation.

Whether the effects of the large 2025 impairment charge and the sizable first-quarter 2026 net loss have fully unwound, however, needs to be confirmed through upcoming quarterly results.

The tightened delisting rules for penny stocks and market-cap thresholds that took effect from July 2026 are not directly related to the company's business, but with heightened market-wide scrutiny of low-priced shares, attention to shareholder value enhancement measures is likely to continue.