Korean paper makers to file anti-dumping complaint vs Japanese rivals

South Korean corrugated cardboard sheet makers such as Asia Paper Manufacturing Co. have decided to file an anti-dumping complaint against Japanese rivals Daio Paper Corp. and Oji Paper Co. in the first such case for Korean paper companies, according to industry sources on Sunday.

Tailim Paper Co. and Korea Paper Mfg. Co. are likely to join Asia Paper to lodge a petition against the Japanese firms with the Korea Trade Commission by no later than early 2025.

“Japanese companies have been dumping their surplus in our country at cheap prices, causing price distortions and serious damage to us,” said one of the sources.

Their aggressive penetration into Korea threatens the manufacturers of kraft liner board (KLB), a type of paperboard used to package TVs, refrigerators and washing machines. KLB is suitable for large boxes thanks to its strength and durability.

But Japanese companies have been elbowing out their Korean peers with low-end liner boards over the past few years to make up for slow demand in China.

Their products weigh 160 grams per square meter and are made from 100% recycled paper.

KLB produced by Korean companies, by comparison, weigh 175 grams per square meter and virgin softwood pulp makes up about 20% of its ingredients, leading it to be regarded as a high-end product.

Korean paper makers argue that Japanese corrugated sheets are dumped in Korea at cheaper prices than in Japan.

In Japan, Daio and Oji sell corrugated fiberboard made of 100% recycled paper for $500 per ton, but in Korea they are priced at $420-$450 per ton.

In comparison, Asia Paper’s corrugated fiberboard sells for about $500 per ton.

Japanese corrugated liner board is mainly used to make ramen boxes and delivery boxes. But Korean packaging paper makers are now using them for large packaging boxes and supply them to home electronics companies such as Samsung Electronics Co. and LG Electronics Inc.

Imports of Japanese corrugated fiberboard into Korea have increased markedly.

According to the Korea Customs Service, imports of Japanese corrugated fiberboard jumped to 62,214 tons this year as of October and are forecast to reach 74,657 tons for the entire year. That figure compares with 56,560 tons in 2023.

Sales of Korean corrugated fiberboard stood at 5.4 million tons in 2023, after peaking at 5.9 million tons in 2021.

Write to Hyung-Chang Choi at calling@hankyung.com
 

Yeonhee Kim edited this article.