24-Hour ATM Cash Withdrawal Style... Mobile Carriers' Unmanned Competition

SK Telecom, Hongdae T Factory Experiment
KT Opens First Self Lounge in Daegu
LG Uplus Introduces Kiosks at 30 Locations

'KT Self Lounge' 1st Branch Opened in Daegu Dongseong-ro

[Asia Economy Reporter Cha Min-young] Following SK Telecom, which introduced its first unmanned store last year, KT and LG Uplus have joined the competition among the three major mobile carriers for future-oriented stores. Kiosk machines that assist with smartphone 'self-activation' services are being introduced in stores, and hybrid stores that switch to unmanned operation at night are also being piloted. The plan is to reduce the proportion of simple tasks to improve sales efficiency and to capture the MZ generation consumers who prefer non-face-to-face methods.

Staff during the day... unmanned at night

According to industry sources on the 30th, KT's first 24-hour hybrid unmanned store, 'KT Self Lounge,' which opened on the 28th in Dongseong-ro, Daegu, consists of both unmanned and manned sections. During the day, staff stay to assist with non-face-to-face services, and at night, it switches to an unmanned store. The second store will open in March on Garosu-gil, Gangnam.

LG Uplus plans to complete the introduction of 'U+ Kiosk' in about 30 major offline stores nationwide this month. This includes major LG Uplus direct stores with many MZ generation customers and high foot traffic, as well as branches inside large marts frequently visited by family members such as Lotte Hi-Mart, Homeplus, and convenience store GS25.

Earlier, SK Telecom was the first to introduce an unmanned store and flagship store called 'T Factory' in the Hongdae area of Seoul in October last year. It installed the industry's first 24-hour unmanned purchase zone, and a non-face-to-face activation event for Samsung Electronics' new premium smartphone Galaxy S21 series pre-order customers was held there.

LG Uplus using 'U+ Kiosk'

Increased sales efficiency... reflecting preference for non-face-to-face

The reason mobile carriers are expanding unmanned services is to utilize sales personnel more efficiently. A significant portion of store visitors come for simple tasks. It also reflects the communication style unique to the MZ generation, who prefer non-face-to-face interactions and messenger communication over face-to-face or phone calls.

For example, at the main kiosk inside KT Self Lounge stores, customers can handle bill payments and plan changes by themselves, and can also experience the latest devices or AI speakers. Plan design and USIM activation are also possible, and vending machines allow the purchase of unlocked smartphones and accessories. In the case of LG Uplus, customers can check and pay bills and activate USIMs with identity verification alone. However, staff are also present to assist customers unfamiliar with self-service.

It also represents a new concept of distribution network that customers can use anytime, like a 24-hour ATM. SK Telecom announced plans to expand this to places like airports or shopping malls where it is difficult to have staff present at all times when opening T Factory. SK Telecom plans to open the 2nd and 3rd stores after accumulating data through operating the Hongdae store.

Namsoo Kim, Executive Director of Digital Business at LG Uplus, explained, "It is the same concept as many customers using bank ATMs for simple tasks like remittances that can be done non-face-to-face through applications or websites."

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