"Building a Database of 'All' Online and Offline Products in Daily Life by 2022"

Sung Yun-mo, Minister of Industry, Proposes Three Major Policies for Contactless Distribution
Big Data Construction, Expansion of Contactless Advanced Logistics Infrastructure, Commercialization and Demonstration of Robot and Drone Delivery

Conceptual diagram of non-face-to-face new distribution services. (Source: Ministry of Trade, Industry and Energy)

[Asia Economy Reporter Moon Chaeseok] A diet recommendation service will be provided to consumers who engage in non-face-to-face consumption by utilizing nutritional and allergy information for each food item.

The Ministry of Trade, Industry and Energy plans to increase the online and offline product database (DB) from the current 640,000 items to 4 million items by 2022. This is due to the growing need to provide consumers with accurate information about products amid the expansion of non-face-to-face consumption.

Minister Sung Yun-mo of the Ministry of Trade, Industry and Energy announced this on the 10th during a visit to SSG.com’s store-type logistics center (EO.S·Emart Online Store).

SSG.com explained to Minister Sung about their 'fulfillment system,' which integrates the entire cycle of ordering, product classification, packaging, and shipping through big data management. Emart Online Store is the first in Korea to offer consumers an unmanned pickup service integrating online and offline stores. When customers order products online, the store acts as a shopping proxy, and a crane robot delivers the ordered products to designated locations inside the store.

In response, Minister Sung presented three major policy directions for non-face-to-face distribution: ▲building a distribution big data foundation ▲expanding advanced logistics infrastructure for non-face-to-face consumption through fulfillment ▲commercialization and demonstration of innovative services using robots and drones.

To establish the distribution big data foundation, the plan is to expand the online and offline product DB to 4 million items by 2022. The DB will build distribution product information centered on barcode-attached products. This will help consumers find or be suggested products they want more easily. It is an essential service for inventory management and timely delivery. The Ministry of Trade, Industry and Energy aims to increase the DB more than sixfold within about a year in collaboration with the Korea Chamber of Commerce and Industry, distributors, manufacturers, and IT service developers.

An official from the Ministry said, "As 'transactions without seeing' become more active, accurate information about products is necessary, and for this, it is essential to build a DB that the industry can use jointly. Currently, the number of products traded in offline stores in Korea is about 500,000 to 700,000, but by building a DB of 4 million items, it will effectively create a DB of 'all' online and offline products that Korean consumers use in daily life."

Efforts are also being made to expand fulfillment. Active support will be provided through methods such as the 'negative entry regulation' system in industrial complexes. With the revision of the enforcement decree on the 12th of last month, restrictions on tenant industries up to 30% of the industrial facility area have been lifted. This has opened the way for online-only logistics centers to enter industrial complexes.

When advanced technologies such as artificial intelligence (AI) and big data are input, advanced fulfillment centers equipped with advanced equipment services and supply chains like robots receive them. Using abundant DB, demand forecasting is performed, and customized services are provided to customers. Same-day and appropriate delivery are standard.

Innovative services using drones and robots will be developed to improve delivery quality. Drone delivery aims for a 98% success rate and plans to demonstrate commercialization of island and mountainous area services by 2023. Indoor delivery robot technology is planned to be developed by 2022. Demonstrations of serving robots in dining establishments have also been underway since this year.

An official from the Ministry said, "Based on these policy directions, the government plans to gather additional industry opinions and prepare a comprehensive government-wide plan for the non-face-to-face economy as soon as possible."

This content was produced with the assistance of AI translation services.