Hansol Paper Finds 'New Business' Ideas from Employees

Contest open until the 13th of next month... Business Diversification Accelerates Under CEO Han Cheol-gyu's Leadership

Hansol Paper, the No. 1 paper manufacturer in Korea, has embarked on discovering new businesses based on employees' ideas. This move is interpreted as a determination to find new growth engines together with employees amid significant uncertainties in the paper industry. The company is considering spinning off the business in the future if the selected employees' ideas show market potential. With the appointment of Han Cheol-gyu as the new CEO, who began his duties from the new year, it is expected that business diversification centered on new businesses will accelerate.

According to Hansol Paper on the 9th, the 'New Business Idea Contest' for employees started accepting submissions from last month 23rd. Hansol Paper plans to receive new business idea proposals from employees until the 13th of next month. Although it is an idea contest held by a paper company, the company did not restrict the business model. This is with an eye toward expanding into various fields.

Hansol Paper will review the ideas submitted by employees by the end of next month and announce the first-stage results, followed by the preparation of detailed business models and evaluations until May this year. The selected business models will then go through a nurturing phase with company support. If there is potential, the company intends not to leave the ideas at the concept level but to develop them into immediately feasible business models. The final evaluation of the developed business models will take place in December this year. This is a year-long project to receive employees' new business ideas and develop them into viable business forms. A Hansol Paper official explained, "If commercialization is decided, we plan to either establish an internal business division or spin off the business." If a spin-off is decided, investment from Hansol Holdings and others is also planned.

Cheolgyu Han, New CEO of Hansol Paper

In particular, this contest is notable as it is the first-ever '1st edition' event held by Hansol Paper. It is the first official attempt to actively discover new businesses based on employees' ideas. If this contest becomes regular, business diversification driven by employee participation is expected to be fully activated.

Hansol Paper's determination to discover new businesses is analyzed to be due to the recent stagnation and uncertainties in the paper industry. In the traditional paper industry, overcoming uncertainties and securing sustainable growth engines is an urgent task. Hansol Paper's performance maintained sales at a similar level to the previous year until the third quarter of last year, but operating profit decreased. Accordingly, Hansol Paper has been continuously reviewing new businesses, including attempting and then abandoning the acquisition of Taelim Packaging, the No. 1 corrugated cardboard company, last year.

This is also related to the fact that the CEO changed and a new management system started with the new year. Since the beginning of this year, Han Cheol-gyu, who was in charge of the business management task force (TF) at the holding company Hansol Holdings, was appointed as the new CEO and started his duties. An industry insider predicted, "Since the new CEO has been in charge of the business management TF at the group holding company, he is expected to accelerate mergers and acquisitions and business diversification to secure new growth engines."