{"id":2204951,"date":"2024-05-02T18:39:05","date_gmt":"2024-05-02T09:39:05","guid":{"rendered":"https:\/\/koreapro.org\/?p=2204951"},"modified":"2024-05-02T18:39:05","modified_gmt":"2024-05-02T09:39:05","slug":"low-cost-high-crime-the-price-of-south-koreas-unmanned-store-revolution","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2024\/05\/low-cost-high-crime-the-price-of-south-koreas-unmanned-store-revolution\/","title":{"rendered":"Low-cost, high crime: The price of South Korea\u2019s unmanned store revolution"},"content":{"rendered":"

In South Korea, the COVID-19 restrictions of yesteryear may be in the rearview mirror, but the so-called contactless retail revolution that the pandemic fueled shows no signs of slowing down.<\/span><\/p>\n

Unmanned stores have proliferated across the country in recent years, reaching <\/span>over<\/span><\/a> 7,400 in number as of last year, and the high-tech, no-contact shops are becoming a defining feature of the ROK\u2019s commercial landscape.<\/span><\/p>\n

These stores have primarily focused on selling food items such as snacks, ramen, meal kits, side dishes and desserts. But the trend is quickly expanding to new domains, with new shows offering everything from flowers and laundry services to study spaces and tanning beds.<\/span><\/p>\n

However, while the rise of these unmanned stores has brought convenience for entrepreneurs and consumers alike, this has been tempered by increasing concerns over security and inadequacy of regulatory frameworks to ensure compliance with safety standards.<\/span><\/p>\n

As such, the ongoing evolution of these unmanned stores is not just reshaping shopping behaviors but also sparking a broader dialogue about the future of commerce and community in the digital age.<\/span><\/p>\n

\"\"

An unmanned convenience store in Seoul with CCTVs mounted on the wall | Image: Korea Pro<\/p><\/div>\n

LOW COSTS, LOW STRESS<\/b><\/p>\n

A recent <\/span>report<\/span><\/a> by the Shinhan Card Big Data Institute revealed a 894% surge in the establishment of unmanned shops from Jan. to Sept. 2023, compared to the same period in 2019.<\/span><\/p>\n

The appeal of unmanned stores, which often stay open around the clock, lies in their relatively low start-up costs and minimal wage expenses, ideal for small-scale entrepreneurs.<\/span><\/p>\n

Gayeon Lee, a 35-year-old owner of an unmanned convenience shop and office administrative worker in Seoul, told <\/span>Korea Pro<\/span><\/i> that she likes that she can manage the store when it suits her and that \u201cthere’s no stress from labor costs or hiring staff.\u201d<\/span><\/p>\n

“I also don’t have to visit the store often, so it doesn’t interfere much with my main job, making it the perfect side business,\u201d Lee added.<\/span><\/p>\n

Researcher Kim Nam-hoon from Hana Institute of Finance explained that the rise in minimum wage and difficulties in securing low-skilled labor have led to a notable shift toward fully automated, smart unmanned stores, particularly due to their popularity among young people.<\/span><\/p>\n

The adoption of unmanned technologies received a further boost during the contactless era prompted by the pandemic, enhancing the public’s acceptance of these innovations.\u00a0<\/span><\/p>\n

This is particularly true among those in their 20s who “pursue efficiency amid communication fatigue, thus enhancing the utilization rate of unmanned devices,” according to Kim.<\/span><\/p>\n

The expert added that the “smartification” of retail environments is likely to continue as the cost of automation technologies such as kiosks and motion-sensing video equipment continue to decline.<\/span><\/p>\n

Another notable driver of the unmanned service trend is the sharp increase in single-person households, according to a separate <\/span>report<\/span><\/a> by Shinhan Card Big Data Research Center.\u00a0<\/span><\/p>\n

More than half of these households report that they prefer utilizing unmanned facilities, valuing the convenience of accessing services on their own schedule without the constraints of traditional business hours.<\/span><\/p>\n

\"\"

An unmanned store with a vending machine that sells vaping products | Image: Korea Pro<\/p><\/div>\n

PRONE TO CRIME<\/b><\/p>\n

The absence of staff can be a double-edged sword for owners, however, as it means the outlets are also particularly vulnerable to crimes and other problems.<\/span><\/p>\n

According to <\/span>statistics<\/span><\/a> from the National Police Agency, there were a total of 6,344 thefts reported from unmanned stores from March 2021 to June 2022, or an average of 13 thefts per day.<\/span><\/p>\n

Regionally, Seoul had the highest number of cases with 1,543 incidents (24%), followed by Southern Gyeonggi with 1,354 cases and Busan with 480 cases.\u00a0<\/span><\/p>\n

The police agency <\/span>predicts<\/span><\/a> that theft will surge even more as both the number of unmanned stores and consumer prices rise.<\/span><\/p>\n

Most unmanned stores are equipped with CCTV systems, but these measures are often insufficient to prevent theft or other crimes.\u00a0<\/span><\/p>\n

Notably, teenagers are <\/span>disproportionately represented<\/span><\/a> in these crimes, committing 52% of the thefts from unmanned stores, according to the South Korean security company S-1.<\/span><\/p>\n

\u201cIt is actually crazy how much theft goes on in my small shop. I think I get around one, whether small or big, a week,\u201d the unmanned shop owner Lee told <\/span>Korea Pro<\/span><\/i>.\u00a0<\/span><\/p>\n

But because many involve minors and the cases are too small, she said most of the time she chooses not to press charges.<\/span><\/p>\n

According to S-1, it’s becoming a trend for teenagers to show off behaviors like damaging unmanned stores on social media, leaving unmanned stores extremely vulnerable to crime.<\/span><\/p>\n

Despite the risks, Lim Jun-Tae, a police science professor at the College of Police and Criminal Justice of Dongguk University, told <\/span>Korea Pro<\/span><\/i> that economic benefits outweigh the potential downsides for small business owners.<\/span><\/p>\n

\u201cDespite a potential increase in theft, the savings on labor costs make unmanned operations economically advantageous \u2026 the financial benefits continue to drive the trend toward unmanned stores,\u201d Lim said.<\/span><\/p>\n

Unmanned stores also pose other risks to teens by potentially making it easier for them to get their hands on age-restricted items.<\/span><\/p>\n

Korea Pro<\/span><\/i> visited an unmanned vape shop in Jongno, a bustling district in central Seoul, in early May and discovered that the shop had its door wide open, even though its social media account stated that the door would only open after customers verified their age.\u00a0<\/span><\/p>\n

The shop maintenance worker told <\/span>Korea Pro<\/span><\/i> by phone that an identification card proving customers are over the age of 19, such as a driver\u2019s license or passport, is still needed to purchase goods at the checkout machine. But the lack of staff means there is no one to confirm that customers are using an ID that belongs to them.<\/span><\/p>\n

Food safety concerns are another issue that has risen in tandem with the proliferation of unmanned stores.\u00a0<\/span><\/p>\n

Complaints about the food for sale at unmanned stores increased from just nine cases in 2020 to 171 cases in 2023, according to a Food Safety Information Center <\/span>report<\/span><\/a>. The main issues reported were expired products, followed by foreign substances detection, product deterioration and hygiene inspection.<\/span><\/p>\n

\"\"

Customers entering Amazon Go through its contactless sensors | Image: Wikimedia Commons<\/a><\/p><\/div>\n

CONTROLS AND LIMITATIONS\u00a0<\/b><\/p>\n

South Korea is not the only country to introduce unmanned stores, and more high-tech retail models may offer one way to limit the downsides of a lack of staff.<\/span><\/p>\n

Customers at unmanned stores in the ROK notably still need to check out manually. But Amazon Go stores, first launched in the U.S. in 2018 offer a \u201cjust walk out\u201d system where shoppers enter the store, pick up what they want and leave through the same gate, all without pausing to pull out a credit card.\u00a0<\/span><\/p>\n

The company’s high-tech sensor scans items consumers pick up and automatically charges their Amazon accounts.<\/span><\/p>\n

While there have been <\/span>problems<\/span><\/a> with this system too, Lim Jun-Tae, a police science professor at Dongguk University, suggested better measures to track customers and maintain control over unmanned shops are also needed in South Korea.<\/span><\/p>\n

For example, he said entry could be recorded and controlled by a credit card system that unlocks the door a second or two after the card is inserted. While this system isn\u2019t foolproof and cannot prevent all types of theft, it would be supported by operational CCTV that can help identify individuals who may not make proper payments, as their card usage is logged.<\/span><\/p>\n

\u201cHowever, it’s important to acknowledge the limitations of such security measures. If an individual were to forcibly break into the store, such as by smashing a window, the preventative capabilities of the credit card entry system and CCTV are circumvented,\u201d Lim explained.\u00a0<\/span><\/p>\n

\u201cThus, while this technology helps in identifying and potentially deterring some forms of theft, it is not equipped to handle all possible scenarios.\u201d<\/span><\/p>\n

Unmanned convenience shop owner Lee told <\/span>Korea Pro<\/span><\/i> that despite the downside of running such a store, she would like to continue the business as it is more convenient for both her and her customers.<\/span><\/p>\n

\u201cAfter all, even with perfect measures, it really is up to both business owners to safeguard their own business and customers to follow ethics in making this society a better place for all of us.\u201d\u00a0<\/span><\/p>\n

Edited by Alannah Hill<\/span><\/i><\/p>\n

Business & Economy<\/span><\/a>Culture & Society<\/span><\/a>Technology & Cyber<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"

In South Korea, the COVID-19 restrictions of yesteryear may be in the rearview mirror, but the so-called contactless retail revolution that the pandemic fueled shows no signs of slowing down. Unmanned stores have proliferated across the country in recent years, reaching over 7,400 in number as of last year, and the high-tech, no-contact shops are […]<\/p>\n","protected":false},"author":10781,"featured_media":2204952,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[24,25,29],"class_list":["post-2204951","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-business-economy","tag-culture-society","tag-technology-cyber"],"yoast_head":"\nLow-cost, high crime: The price of South Korea\u2019s unmanned store revolution - Korea Pro<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/koreapro.org\/2024\/05\/low-cost-high-crime-the-price-of-south-koreas-unmanned-store-revolution\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Low-cost, high crime: The price of South Korea\u2019s unmanned store revolution - Korea Pro\" \/>\n<meta property=\"og:description\" content=\"In South Korea, the COVID-19 restrictions of yesteryear may be in the rearview mirror, but the so-called contactless retail revolution that the pandemic fueled shows no signs of slowing down. 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