Most 'Robot Waiters' Filling Restaurants Are Made in China... "Korean Robots Face Extinction Crisis"

Korean Service Robot Market Size 700 Billion KRW This Year
Chinese Products, Production Cost↓·Purchase Subsidy Up to 70%
"Cheap Chinese Robots Dominate Korean Market," Foreign Media Point Out

Demand for serving robots is increasing in Korea, but it has been identified that a significant portion of them are Chinese-made. There are also assessments that the Korean robot industry is facing a crisis.

On the 27th (local time), the Financial Times (FT) reported, "Chinese-made robot waiters are fueling Koreans' anxiety over labor shortages." While serving robots play a key role in alleviating labor shortages in Korea, which has the lowest birth rate in the world, the market is dominated by inexpensive Chinese robots, leading to a crisis in the related industry.

Visitors attending the '2022 RoboWorld' held at Kintex in Goyang, Gyeonggi Province, on October 26 last year, are watching a serving robot.
Goyang - Photo by Kang Jin-hyung aymsdream@

Recently, demand for serving robots in Korea has been on the rise. According to the Korea Robot Industry Association, about 5,000 domestic serving robots were distributed last year, an increase of approximately 67% compared to the previous year. This year, it is expected that up to 10,000 units will be distributed, doubling last year's figure.

Korea has the highest "robot density" in the world. According to the International Federation of Robotics, Korea's industrial robot density in 2021 was 1,000 units per 10,000 manufacturing workers, the highest globally. This figure exceeds the world average by more than seven times and far surpasses major countries such as Singapore (670 units), Japan (399 units), China (322 units), and the United States (274 units).

The outlook for the serving robot market is also favorable. According to the Korea Institute of Science and Technology Information, Korea's service robot market is expected to grow from $530 million (about 701.2 billion KRW) this year at an average annual growth rate of 23%, reaching $1 billion (1.3233 trillion KRW) by 2026, approximately doubling in size.

Chinese Serving Robots Cost 10 to 30 Million KRW Each... 20-30% Cheaper Than Domestic Models

On April 19th, 2023, a serving robot was demonstrated at the '2023 World IT Show' held at COEX in Gangnam-gu, Seoul. Photo by Jinhyung Kang aymsdream@

The majority of robots currently introduced in Korea are Chinese-made. The Robot Industry Association estimates that about 70% of the domestic serving robot market is produced by Chinese companies. Chinese serving robots cost between 10 million and 30 million KRW per unit, about 20-30% cheaper than domestic models. Since the introduction of robots is primarily aimed at reducing labor costs, price competitiveness is considered crucial.

According to FT, China uses domestically produced components in serving robots, whereas Korea imports parts from Japan, the United States, Germany, and China, resulting in relatively higher production costs. Additionally, the Korean government provides subsidies for purchasing serving robots regardless of the country of manufacture, which has led to the market being effectively taken over by Chinese products. It is reported that China provides large-scale subsidies to robot manufacturing companies.

FT pointed out, "The Korean government supports up to 70% of the purchase price from the national treasury (subsidies) for serving robot buyers regardless of the origin to promote robot adoption," and added, "Unlike the United States, Korea does not impose tariffs on imported Chinese robots."

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