
South Korea's Trade Ministry unveiled a strategic plan Friday to reshape the retail industry through expanded adoption of artificial intelligence, aiming to boost efficiency and drive sector-wide innovation.
At a meeting held at the Korea Chamber of Commerce and Industry in Seoul, attended by industry officials and experts, the Ministry of Trade, Industry and Energy outlined a multi-faceted strategy to increase the AI utilization rate among Korean retailers from less than 3 percent to 30 percent within three years.
AI adoption targets improvements in commercialization, marketing, store operations, logistics and delivery, and customer experience.
The utilization of advanced AI solutions in the retail sector aims to dramatically enhance efficiency and optimize processes in complex value chains and labor-intensive operations. This aligns with global trends, as AI-powered retail giants like Amazon and Walmart are also leveraging AI to drive innovation.
The technology is projected to cut inventory costs and total delivery costs by 20 percent while reducing delivery times by 10 percent. The initiative also emphasizes enhanced consumer rights protection, ministry officials added.
To achieve this goal, the ministry pledged to establish standardized AI guidelines, provide dedicated consulting services and develop specialized AI training programs and a regulatory framework to promote AI adoption while safeguarding intellectual property rights.
The plan also includes forming an alliance of retailers, AI and infrastructure companies and venture capital firms to facilitate knowledge sharing.
The ministry will establish funds, including corporate venture capital funds expected to reach 10 trillion won ($6.7 billion) by 2028, to support AI technology firms, small and medium-sized retailers and AI startups within the sector.
“Amid shifting demographics, sluggish economic growth and heightened competition from global retail giants in the Korean market, the use of AI has become inevitable,” said an official from the ministry. “The government will prioritize consumer interests while driving innovation in the retail industry.”