How unmanned stores in South Korea reflect shift in consumer economy

Here in South Korea, the number of shops that operate without any shopping assistants has dramatically increased since the early 2020s.

Started as a new way to buy products without physical contact, the sector and business models are diversifying to meet the evolving needs of consumers.

For more, we have our business correspondent Park Jun-han here in the studio to tell us about South Korea's new consumption pattern.

Welcome, Jun-han.

Thank you for having me Dami.

1. Jun-han, I heard that you visited unmanned stores that sell different items.

Could you explain in detail what these stores are and what types of sectors they cover?

Dami, just yesterday, I visited three shops that sold ice cream, fresh fruit, and pet supplies.

What stood out was that they were fully operating without a shop assistant present.

All I had to do was simply pick up the item, bring it to the counter, and scan the barcode.

After scanning, I inserted my card, and the payment went through successfully.

The types of unmanned stores I mentioned earlier are just the tip of the iceberg.

Various sectors ---industries that we could expect ---have embraced unmanned operations and are now seamlessly integrated into our daily lives.

According to a survey by a credit card company here, the most common types of unmanned stores include ice cream shops, laundry shops, photo booths, study cafes, and packaged meal stores.

Although estimates vary by institution, it is generally assumed that there are over 10-thousand unmanned stores in the country now.

From January 2020 through 2025, the number of unmanned stores grew 314 percent.

It increased more than fourfold from 2020 to 2023, and has remained steady for the last two years.

Also, because unmanned stores have lower operating costs than traditional ones with fixed expenses, younger people are increasingly involved in starting unmanned businesses.

Data shows that 30 percent of unmanned store owners are in their 20s or 30s — nearly double the 16 percent seen among owners of traditional stores.

2. Alright Jun-han, after visiting several sites yourself, how are consumers reacting to this consumption trend?

Why do you think unmanned stores are gaining popularity?

Dami, for customers, the main reasons they visit unmanned stores are their accessibility and reasonable prices.

Let's take a listen to what customers of an unmanned ice cream shop had to say about their shopping experience.

"It's cheaper than convenience stores, and I like that I can pay on my own without waiting."

"Since it's open 24 hours, I can stop by anytime after studying near my academy, which I find really convenient."

A professor who focuses on consumer economics and policy said it's a win-win situation for store owners and customers.

"Labor costs are rising, and consumers are not in a financially comfortable situation, so they tend to look for more cost-effective products.

As businesses aim to reduce fixed costs and consumers have become more accustomed to contactless services, they are less resistant to technology — and these two factors seem to have created a synergy."

3. I get it Jun-han, but what aspects of Korean consumer culture can we observe through this trend?

Dami, these unmanned businesses can only operate based on trust.

From both the store owners' and experts' perspectives, they say theft is rare, and this mutual trust between customers and sellers is often seen as a key driver behind the growth of unmanned businesses.

Let's take a listen to what the owner of an unmanned ice cream store and a professor of consumer policy had to say about this.

"The CCTV is running, and in most cases people act honestly. Of course, there are occasional mistakes during checkout, but they're usually unintentional. Overall, people are very conscientious."

"In Korea, there's a strong sense of ethics. Even in coffee shops and other public places, people don't steal personal belongings, which foreigners definitely see as a positive aspect."

4. So my last question, Jun-han, is about unmanned stores maybe being helpful but not always perfect.

What are the prospects, and are there any concerns that industry officials or related professors raised?

Yes Dami.

An expert told me that this new consumer trend involving unmanned stores is a result of combined factors — technological advancement, efforts to reduce fixed labor costs, and a shrinking workforce due to low birth rates.

While she said there's no immediate concern, the professor added that if larger corporations begin entering the unmanned store business, it could eventually impact the job market.

Let's take a listen to what she said.

"If unmanned stores are operated by large franchises or spread to large stores, there is clearly a possibility that this could affect employment in South Korea."

With lower operating costs, growing public trust, and consumers adapting to new technologies that change how we shop, unmanned stores may offer an early glimpse of what future retail markets will look like in the years to come.

Thank you Jun-han for the insights you shared.

Thank you Dami, it was a pleasure.