Moorim SP & Moorim P&P Shareholders' Meeting on 25th
CEO Lee Do-gyun Reappointed
Moorim Group, now in its fifth year under CEO Lee Do-gyun, is seeking growth momentum in eco-friendly businesses.
On or around the 26th, each affiliate of Moorim Group reappointed CEO Lee Do-gyun as an inside director, reinforcing his leadership. Moorim SP and Moorim P&P reappointed CEO Lee as an inside director at their regular shareholders' meetings the day before. Moorim Paper will hold its regular shareholders' meeting at 10:30 a.m. on the same day to reappoint CEO Lee as an inside director.
At the top of Moorim Group's governance structure is Moorim SP. Moorim SP owns Moorim Paper as a subsidiary, and Moorim Paper, in turn, owns Moorim P&P as a subsidiary. CEO Lee serves as the CEO of all three companies. He is the eldest grandson of the late founder Lee Moo-il and the eldest son of Chairman Lee Dong-wook.
Born in 1978, CEO Lee joined Moorim Paper's sales headquarters in 2007 and spent 14 years learning management through the paper business headquarters and strategic planning office. In 2010, he worked at the construction site of the integrated Ulsan Moorim P&P plant, leading the completion of Korea's first integrated pulp and paper mill.
Since CEO Lee took office in 2020, Moorim has been stagnant. Moorim Paper's operating profit last year was 67.7 billion KRW, down 30% from the previous year. Moorim P&P recorded an operating profit of 11.6 billion KRW last year, down 83% from the previous year. The overall domestic and international environment in the paper industry remains challenging, making it difficult to guarantee performance this year as well.
CEO Lee has identified eco-friendly business as a new growth engine. Since April 2020, shortly after his appointment, Moorim has focused on research and development of eco-friendly materials. By the end of last year, Moorim pursued the development of low-cost mass production technology for eco-friendly cellulose fiber materials. These fiber materials can be used for high-strength, heat-resistant automotive interior materials, among other applications.
Moorim also plans to complete the development of additives for highly transparent biodegradable oxygen and moisture barrier films with a biomass content of over 90% by the end of this year. These films are evaluated as usable for eco-friendly aqueous coating agents and food packaging films. The cellulose that Moorim is focusing on developing is a type of bioplastic made by breaking down plant fibers to the nano level.
Some new materials have also succeeded in commercialization. Moorim developed 'NeoCotton TMB,' the first packaging paper in Korea made from discarded clothes, and has started using it for cosmetic packaging. NeoCotton TMB is made by separating cotton fibers from old clothes, grinding them into small pieces, and mixing them with natural pulp. This packaging material has been applied to LG Household & Health Care’s brand ‘O Hui.’
Moorim P&P, which produces and sells pulp, the raw material for paper, has also launched products such as 'moohae (Moohae) pulp mold' and 'moohae (Moohae) paper wet wipes' made from natural raw pulp. The pulp mold business was directly promoted by CEO Lee. Currently, it supplies various fields including ▲chicken boxes ▲plates ▲lunch boxes ▲takeout cups.
Currently, the sales proportion of eco-friendly businesses at Moorim is not large, as the related market has not yet been significantly formed. To raise awareness, Moorim holds large-scale B2C events for consumers every year, such as the 'Paper Airplane Contest' and 'Paper Adventure.'
A Moorim official said, "We plan events so that people can empathize with the eco-friendliness of paper in their daily lives, practice ESG values, and reflect on the importance of the environment," adding, "We will promote the eco-friendliness and product quality of 'cotton paper' (paper made from cotton fiber raw materials)."
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