9 out of 10 people have flocked to the nearest CVS in the dead of the night for a bedtime snack. In recent years, automated stores have become the norm due to their 24/7 availability. However, under the convenience lies the struggles of vendors.
Owners of convenience stores started to transition to this new model as South Korea’s minimum wage rose above 10,000 won in 2024. 40% of the accommodation and food industry faces increased input costs. Consequently, large distribution chains dominate with unmanned units.
From the consumers’ side, cashier-free stores open a modern era of convenience – more than 91% of citizens in South Korea have interacted with autonomous retail stores. These vendors continue to burgeon and spring up – the numbers have increased by 18 times in the past four years.
Store owners bear the brunt of this new trend. Kiosks require between 60 and 80 million won – well beyond the capacity of family-run businesses. As modern technology creates disparity, local stores lose competitiveness in their towns.
Accordingly, some available owners have successfully converted to survive. “I had to go unmanned at night and reduce employment,” said an anonymous E-mart chain store owner. “There is heavy competition around the service sector, and I believe the number of unstaffed stores will make it an obligation for others in the short future.”
Corporate giants rapidly replaced less affluent stores – by 1740 retailers had shut down by 2024. “I ran the store for eight years only to find myself shutting the doors,” said a former local store owner in the city of Daegu. “A chain store down the block operates 24/7, equipped with automated kiosks and a superior supply chain. Us local owners cannot compete with their prices or their technology.”
Large chains further exploit this opportunity to drive away smaller businesses in the name of profit. Despite protective measures in the Franchise Business Act, a law that dictates a minimum distance between large chains and retail larger businesses find loopholes. The government continues to sideline this issue.
This effect trickles down to youth who work part-time gigs. 60.5 % of fourth-year graduates face hardship as kiosks replace employees and retailers have less money to spare. A part-time worker in a hybrid-run chain store in Daegu commented, “I had a difficult time looking for a job myself, as more and more convenience stores are switching to hybrid models or completely automotive venues.”
Beyond economic concerns, the rise of autonomous stores strips shopping of community interactions. “Convenience stores carry more meaning than shopping, it’s about connecting in daily life,” said a 35-year-old citizen in Daegu. “You walk into a store when the owner knows you. It’s cold and transactional with these automatic stores.”
While cashier-free service has offered clear benefits in the past five years, an uncontrolled spread of cashier-free systems may bring long-term harm. Careful management of this transition remains crucial to balancing efficiency with economic and social well-being.
