[Climate Tech Battle⑬] Cosmetics in Paper Packs... 'Refilli' Replacing Plastic

Interview with Kim Jaewon, CEO of Refillie
Paper Packs Have Low Carbon Emissions and High Cost Efficiency
Development of Ultrasonic Welding Packaging Machine

Plastic waste in South Korea has rapidly increased since COVID-19 due to the rise in consumption of convenience foods and delivery meals. According to a report by the environmental organization Greenpeace, the total amount of plastic waste in South Korea reached 11.93 million tons as of 2021. In particular, household plastic waste, including food and beverage plastic packaging, amounted to 4.682 million tons, which is 2.6 times higher than in 2010. Refillly is a startup that has developed an eco-friendly packaging solution to address this 'plastic saturation.'

Kim Jaewon, CEO of Refillly, is being interviewed on the 13th at Page Myeongdong, Jung-gu, Seoul. Photo by Kang Jinhyung aymsdream@

On the 10th, Kim Jaewon, CEO of Refillly, said, "The ultimate goal is to replace countless plastics in the world with paper packs." Refillly has made it possible to use paper packs, which were previously used only for food and beverage purposes such as milk and soy milk, as packaging for various items. Currently, they package household goods and cosmetics such as shampoo, dish detergent, and body wash in paper packs.

CEO Kim became interested in the eco-friendly packaging market while working at a carbon credit consulting company. He wanted to run a business that not only made good profits but also contributed to the environment and society. The market size for paper packs, which can serve as an alternative to plastic, was also continuously growing. The current eco-friendly packaging market in South Korea is estimated at 42 trillion won, showing an average annual growth rate of about 8.7%.

Since its founding in 2020, Refillly has produced about 35,000 paper packs. Producing and disposing of a 500ml PET bottle emits about 111g of carbon, but the same size paper pack emits about 37g of carbon, reducing emissions by approximately 70%. It is also about 18% cheaper than plastic, making it competitive. Refillly produces products mainly through business-to-business (B2B) collaborations with companies such as Ottogi and Yuhan-Kimberly.

The most important factors in the paper pack solution business are stability and storage. Paper, a sensitive material, will tear and leak contents if even 1% of the bonding is not done properly. Refillly developed a machine that can package paper packs using ultrasonic bonding after more than 5,000 tests. CEO Kim explained, "We accumulated data by peeling paper packs layer by layer and researching detergents and shampoos," adding, "Our method reduces electricity costs by about 80% and produces paper packs about 20% faster than the existing commercialized paper packs made by heat bonding." Refillly’s products have been certified for commercialization and safe sales by the Korea Conformity Laboratories (KCL) and KOTITI Testing & Research Institute.

A product being produced by the startup Refillly, which makes paper pack household items. Photo by Jinhyung Kang aymsdream@

On the 8th, Refillly launched its own brand, 'Heymilly.' They produce and sell hygiene products such as dish detergent and pet dish cleaner made with eco-friendly ingredients without unnecessary additives, packaged in paper packs. Next month, they plan to sell products containing domestic agricultural products such as rice and white rice. Based on this, Refillly expects to achieve sales of 500 million won this year, anticipating a fivefold growth from last year’s 100 million won in sales. They also plan to start exporting next year.

As the first company in South Korea to commercialize paper pack packaging, there are still challenges to overcome. CEO Kim said, "Since paper packs have been used only for food and beverages, consumers might mistake detergents and other products for food," adding, "We plan to raise consumer awareness and actively market to promote the functions of paper packs." Because there are almost no regulations or laws regarding paper packs, they are communicating with the Ministry of Environment and others to organize related matters.

Refilly plans to expand paper packs beyond household goods to various items. CEO Kim said, "We can produce all liquid forms such as paint and watercolors, and in the future, we want to package powders, pills, and even pharmaceuticals in paper packs," adding, "We will continue to challenge ourselves until we can replace 30% of the plastics used worldwide for packaging."