[Special Series] A 10-Year History of Unmanned Stores in South Korea ①: From 'Claw Machines' to 'National Lifestyle'

As of 2025, it is no longer awkward in South Korea to go through the entire process of eating ramen at a convenience store, drinking coffee at a cafe, and even taking passport photos and playing tennis without encountering a single person. This massive trend was not built overnight. Starting with the emergence of single-person karaoke rooms in 2013, followed by the claw machine craze in 2016, and the non-face-to-face business startup boom brought about by the COVID-19 pandemic. Unmanned stores have completely reshaped the landscape of South Korean self-employment over the past 10 years.

[Incubation Period: 2013~2018] Unmanned Stores Became 'Play'... Coin Karaoke Survived While Claw Machines Disappeared

It was 'entertainment' that opened the prelude to unmanned startups. 'Coin karaoke,' which spread in earnest around 2013, completely changed the existing culture of large karaoke rooms. It reorganized karaoke rooms, which used to be the venue for second-round group drinking sessions, into 'single-person and small cultural spaces' that can be enjoyed alone. Entering its maturity stage around 2018, coin karaoke has settled as a solid business type beyond a simple fad. Currently, coin karaoke has established itself as a typical 'facility business' whose success or failure is determined by the nature of the commercial district and floating population, and is classified as a stable startup item.

On the other hand, 'claw machine rooms,' which swept downtown areas in 2016, had starkly contrasting fortunes. In the early days of their launch, stores rapidly increased, centered around bustling streets and commercial districts, due to the advantage of being able to start a business at a low cost. However, the glory was short-lived. In 2017, just a year later, it reached a 'peak-out (decline after reaching the top)'. This was due to an overlap of overheated competition among stores that sprang up like mushrooms, strengthened regulations following controversies over promoting gambling, and, above all, the fatigue felt by consumers. Currently, the nationwide boom for claw machine rooms has ended, and they are barely maintaining their existence only in some entertainment districts. This left a painful lesson for the unmanned startup market that "simple mechanical device businesses without differentiation will be eliminated within 1 to 2 years."

Another change to note during this period is the beginning of 'lifestyle-integrated unmanned services.' 'Coin laundries and self-laundromats,' which spread from 2016, grew in tandem with the demographic change of an increasing number of single-person households. Companies such as Korea Laundry, which operates the WashEnjoy brand, began to expand their number of stores during this period, and Uisikju Company, which operates the household laundry service Laundrygo, also jumped into this market under the brand Laundry24. Laundromats, which spread quickly through a franchise model, entered a saturation phase between 2018 and 2020. However, because laundromats were approached as 'essential lifestyle services' rather than 'play,' they survived as a representative model of stable unmanned operations despite the issue of oversupply. It was also around this time that the importance of location and commercial district analysis emerged.

[Expansion Period: 2019~2022] Unmanned 'Retail Stores' Penetrating Alley Commercial Districts

Starting in 2019, the wind of unmanned operations shifted to neighborhood alley commercial districts. The frontrunner was the 'unmanned ice cream discount store.' This industry, which spread rapidly in 2019, targeted the niche of convenience stores armed with 24-hour operation and unconventional price competitiveness. However, due to the extremely low barriers to entry, it faced a severe state of saturation starting around 2021 to 2022. Facing deteriorating profitability, these stores are currently undergoing a period of restructuring, either evolving into convenience store-type mixed stores that sell tanghulu, international snacks, and pet treats alongside simple discounted goods, or being phased out.

[Explosion Period: 2020~2022] The 'Non-Face-to-Face Mega Wave' Launched by the Pandemic

COVID-19 was the decisive catalyst that changed the paradigm of unmanned stores. As the psychology of avoiding face-to-face contact spread due to social distancing, 'study cafes,' 'unmanned photo studios,' and 'meal kits' emerged as the top 3 leaders in the startup market.

'Study cafes,' which grew rapidly in combination with the non-face-to-face trend in 2020, replaced reading rooms and increased explosively until 2022. However, they went through an adjustment period in 2021~2022 due to overheated competition, and have currently entered a polarization stage where profits are sharply divided depending on location and facility management ability (operational capability). ING Story, known for Zaksim Study Cafe, recorded the highest sales in the last 5 years with 24.8 billion won in 2020, and in 2024, it recorded 13.1 billion won in sales, which is about half of that level.

Unmanned photo studios, represented by 'Life Four Cuts (LK Ventures),' emerged in 2018 and established themselves as a nationwide standard culture from 2020 to 2022. Unlike the sticker photo machines of the past, they settled as an essential dating and friend course for the MZ generation, and the supply became sufficient to the point where the waiting line culture eased. It is evaluated that they have now settled as entertainment content enjoyed at all times, going beyond simple photo shoots.

'Specialty meal kit stores,' which appeared in 2020 due to the explosion in demand for home-cooked meals, also grew rapidly until 2022. However, competition intensified as large corporations and hypermarkets jumped into the market and delivery services became more sophisticated. Currently, the market has been reorganized around top-tier companies that have secured brand awareness, product power, and distribution channels, rather than individual stores.

Up until 2022, unmanned stores expanded quantitatively by meeting the demands of the times, namely 'labor cost reduction' and 'non-face-to-face' services. However, after the declaration of the endemic in 2023, people began to seek face-to-face services again, and unmanned stores faced a new phase.