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South Korean shops turn to robots, self-service to escape labor woes
Owners are using robots and self-service to run unmanned cafes and shops as labor costs squeeze small businesses, Reuters reported.
Unstaffed coffee shops, ramen eateries, and flower outlets are spreading across South Korea as owners deploy robots and self-service kiosks to overcome rising labor costs.
South Korea faces a labor crunch due to a rapidly aging population, with the government expecting the population to shrink from 51.8 million to 36.2 million by 2072. "The population of baristas in their early 20s is drastically declining," said Kim Dongjin, chief executive of Lounge X.
According to the National Fire Agency, unstaffed stores reached an estimated 9,000 nationwide by the end of 2024. Low rates of petty crime in South Korea enable owners to run 24-hour shops like Lounge X.
Payments provider Samsung Card reported that automated stores likely grew four times by 2025 from 2020 levels. While most operate in Seoul, the trend extends to pet supply stores and clothing boutiques.
While unstaffed, cashier-free stores exist globally in countries like Britain and the United States, the concept has spread wider in South Korea. The model now encompasses niche retail sectors beyond standard food services.