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KOSPI Plummets 4%, Market Capitalization Drops by 355 Trillion Won as Fear Grows, Individual Investors Buy the Dip ◆Ajou Economic Major News ▷On June 10, the KOSPI index fell more than 4% in a single day, resulting in a loss of 355 trillion won in market capitalization. -The KOSPI 200 Volatility Index (VKOSPI), often referred to as a fear gauge, reached 88.45, maintaining a historically high level. -Recent market conditions have been marked by extreme volatility, with the sidecar mechanism activated 24 times in the securities market this year. -This is approaching the annual activation count of 26 seen during the 2008 global financial crisis. -Despite the downturn, individual investors have been actively buying undervalued large-cap semiconductor stocks. -From June 1 to June 10, net purchases in the securities market totaled 21.9866 trillion won. -Securities firms continue to raise target prices for Samsung Electronics and SK Hynix. ◆Key Reports ▷Data Talk #20: MSCI Developed Markets Inclusion Issue -MSCI will announce the results of its annual market reclassification review on June 23 (Korean time, June 24 at 5:30 a.m.). -The fastest scenario for South Korea to be classified as a developed market would involve being added to the Watch List this year, with an announcement in June 2027 and actual inclusion by the end of May 2028. -South Korea currently ranks second in market capitalization among emerging market indices and would become fifth in developed markets and third in EAFE upon inclusion. -Funds tracking developed and EAFE indices are larger than those for emerging markets, but South Korea's proportion may decrease, leading to a potential outflow of index fund capital. -However, inclusion in developed markets is expected to enhance strategic asset allocation by global pension funds and sovereign wealth funds. -Additionally, the potential for increased index representation for China and Vietnam could provide a positive outlook amidst uncertainties in emerging market indices. ◆Major Disclosures After Market Close (June 10) ▷Hyundai Motor Company to invest 26 trillion won in a new R&D hub in Wirye. ▷Lotte Shopping to issue 260 billion won in corporate bonds for debt repayment. ▷Daehan Optical Communication ends a 3.5 billion won bond seizure. ▷Webzen to repurchase an additional 10.9 billion won worth of its own shares. ▷Fantagio to list 3.27 million new shares through a third-party allocation in a capital increase. ◆Fund Trends (as of June 9, excluding ETFs) ▷Domestic equity funds: +75.7 billion won ▷Overseas equity funds: -74.5 billion won ◆Key Schedule for Today (June 11) ▷South Korea: Simultaneous expiration of futures and options, May employment trends. ▷United States: May Producer Price Index. ▷Europe: ECB monetary policy meeting.* This article has been translated by AI. 2026-06-11 08:21:00 -
Hanwha Solutions Secures Approval for 1.7 Trillion Won Capital Increase Hanwha Solutions has received approval from the Financial Supervisory Service for its capital increase. According to a public announcement on June 11, the Financial Supervisory Service decided not to request corrections to the capital increase securities registration statement submitted by Hanwha Solutions on May 26, thereby activating the effectiveness of the statement. The capital increase, amounting to 1.7 trillion won, will take effect from June 11. Previously, Hanwha Solutions aimed for a capital increase of 2.4 trillion won for debt repayment and future investments in March, but regulatory intervention led to a reduction of about 700 billion won. During the review process, the Financial Supervisory Service raised concerns about specific liquidity risks, the sale of non-core assets, and the basis for long-term profit and loss estimates, prompting two requests for revised registration statements. Under regulatory pressure, Hanwha Solutions reduced the capital increase to 1.8 trillion won and further cut the planned debt repayment amount by 100 billion won on May 26. Ultimately, the registration statement was amended to reflect a total of 1.7 trillion won. Of the funds raised through this capital increase, 900 billion won will be allocated for future investments, including the establishment of a perovskite tandem production line and expansion of TOPCon production capacity. The remaining 800 billion won will be used to repay debts accumulated due to the downturn in the petrochemical industry. Hanwha Solutions plans to conduct subscriptions for employee stock ownership and existing shareholders over two days starting July 22, with the new shares expected to be listed on August 11.* This article has been translated by AI. 2026-06-11 08:15:00 -
The Importance of Buddhist Scriptures in the Age of AI Throughout human history, great civilizations have always left behind remarkable scriptures. India had the Vedas, China had the Analects and the Tao Te Ching, and Korea had the Cheonbu-gyeong and the Samil Sin-go. A monumental beacon that has illuminated the spiritual world of East Asia for thousands of years is the Buddhist scriptures. Buddhism is not merely a religion; it is a vast spiritual civilization that explores human suffering and happiness, life and death, desire and freedom, ignorance and enlightenment. Therefore, even today, as AI begins to mimic human intelligence, Buddhist scriptures remain a living repository of wisdom.Today, humanity lives in the most prosperous era in history. With a smartphone in hand, one can search for information from around the world, AI can draft documents faster than humans, and science and technology are advancing at an unprecedented pace. Paradoxically, however, human minds are becoming increasingly anxious. Depression and anxiety disorders are on the rise, loneliness has become a hallmark of modern life, and many feel empty despite an abundance of material wealth. While information has increased, wisdom has diminished; connections have multiplied, but relationships have become superficial. At this juncture, Buddhist scriptures pose profound questions to modern individuals: What is the purpose of human life? Where does true freedom lie? Does happiness come from outside, or does it originate within?Among Buddhist scriptures, the Heart Sutra is undoubtedly the most widely read. This brief text, consisting of just over 260 characters, encapsulates the essence of Mahayana Buddhism. The core of the Heart Sutra is condensed in the phrase "form is emptiness, emptiness is form." At first glance, it may seem like a complex philosophy, but it conveys a very practical teaching. Humans tend to perceive what is visible as reality. They believe that wealth is theirs, power is eternal, and youth will last forever. However, the Heart Sutra teaches that nothing in this world is eternal. Flowers wither, seasons change, and people age and depart. All existence is in constant flux. Thus, the more one clings, the greater the suffering, and the more one lets go, the more freedom begins.The final part of the Heart Sutra is even more famous: "Gate, gate, paragate, parasamgate, bodhi svaha." Many Koreans have heard this phrase, which is not just a simple incantation. It means, "Let’s go, let’s go, let’s go to the other shore. Let’s go to the world of enlightenment." It is a grand declaration of the human spirit to transition from ignorance to wisdom, from desire to freedom, and from suffering to liberation. I believe this phrase is one of the most essential messages for modern individuals living in the age of AI. While we are crossing the river of technology, we are failing to cross the river of the heart.The Diamond Sutra offers another dimension of wisdom. Named for its ability to shatter human ignorance with diamond-like clarity, the core of the Diamond Sutra is encapsulated in the phrase "one should give rise to a mind that does not dwell anywhere." Most people remain stuck in the past. Some cling to former glories, while others are trapped by past failures. Still, others lose the present in anxiety about the future. However, the Diamond Sutra advises against dwelling. Live as the river flows. Observe thoughts as clouds drift by. Do not try to grasp them; let them go. Then, the mind will become free.Another notable phrase from the Diamond Sutra states, "All conditioned phenomena are like a dream, an illusion, a bubble, a shadow, like dew or lightning; one should view them like this." This passage teaches humility. There is no reason to be arrogant in success or despair in failure. The present wealth is not eternal, nor is the current suffering. Change is the essence of the universe. The Diamond Sutra teaches freedom that remains unshaken amid change.The Lotus Sutra embodies the grandest ideals among Buddhist scriptures. It asserts that every human possesses Buddha-nature. Kings can become Buddhas, farmers can become Buddhas, children can become Buddhas, and the elderly can become Buddhas. The essence of the Lotus Sutra is a declaration of human dignity. No one is a discarded being, and everyone has the potential for enlightenment. In today’s AI era, there is a strong tendency to evaluate human value based on productivity and efficiency. However, the Lotus Sutra asserts that human value lies not in ability but in existence itself. Every being is precious, and every being harbors the potential for enlightenment.If the Heart Sutra teaches letting go of attachment, the Diamond Sutra advises against dwelling, and the Lotus Sutra speaks of human dignity, then the great cultural heritage that synthesizes all these teachings and passes them down to future generations is the Tripitaka.The Tripitaka, stored at Haeinsa Temple in Gyeongsangnam-do, South Korea, is not merely a collection of Buddhist scriptures. It embodies the spirit of the Goryeo people and the pride of Korean civilization. During the national crisis of the Mongol invasions, Goryeo sought to protect the country through the teachings of the Buddha. From 1236 to 1251, they created the Tripitaka over 16 years. Specifically, it consists of 81,258 wooden blocks inscribed with Buddhist scriptures and treatises, making it the largest woodblock print in the world. The total character count exceeds 52 million. In modern terms, it can be likened to a vast knowledge repository created by humanity in the medieval era.Even more astonishing is its accuracy. Scholars worldwide have marveled at the fact that few errors have been found in the Tripitaka. The artisans and monks of Goryeo compared various scriptures from China, Khitan, and the Song Dynasty to create the most accurate text. It was not merely copying; it was a scholarly endeavor of the highest caliber. Consequently, the Tripitaka is regarded as one of the most complete Buddhist canons today.The woodblock production technology is also remarkable. High-quality timber from the southern coast was soaked in seawater, boiled in saltwater, and dried for years to prevent warping. Each character was meticulously carved. This is why, even 800 years later, most of the woodblocks remain intact. The Jangyeong Panjeon at Haeinsa Temple is also a marvel of science. Its natural ventilation structure regulates humidity and maintains temperature, impressing even modern architects. UNESCO designated the Tripitaka and the Jangyeong Panjeon as World Documentary Heritage and World Cultural Heritage for these reasons.Every time I view the Tripitaka, I am struck by one thought. Today, humanity is constructing massive data centers for AI. Countless servers store data, train algorithms, and accumulate knowledge. However, the Goryeo people created the largest knowledge repository for humanity 800 years ago. The difference is that while today’s data centers are warehouses of information, the Tripitaka is a warehouse of wisdom.Information can make humans smarter, but wisdom can set them free. AI can process information but cannot attain enlightenment. AI can calculate but cannot practice compassion. AI can analyze but cannot achieve liberation. Thus, as technology advances, spirituality becomes increasingly important.The Heart Sutra teaches us to let go of attachment. The Diamond Sutra advises us not to dwell anywhere. The Lotus Sutra asserts that there is a Buddha within every being. And the Tripitaka preserves all this wisdom, passing it down to us over 800 years.Ultimately, what the Buddhist scriptures convey is singular: humans are not beings born to possess but beings who live to attain enlightenment. Even in the age of AI, the last territory of humanity is the heart, and one of the oldest mirrors reflecting that heart is the Buddhist scriptures. The Heart Sutra, the Diamond Sutra, the Lotus Sutra, and the Tripitaka are not stories from 2,000 years ago; rather, they may be messages for the future that resonate even more urgently with modern individuals living in the age of artificial intelligence.* This article has been translated by AI. 2026-06-11 08:15:00 -
IBK Securities Maintains Buy Rating for Hyosung Heavy Industries with Target Price of 4.9 Million Won IBK Securities has projected continued solid performance growth for Hyosung Heavy Industries, maintaining a target price of 4.9 million won and a "buy" rating. Kim Tae-hyun, an analyst at IBK Securities, forecasts that Hyosung Heavy Industries will report consolidated revenues of 1.9091 trillion won and operating profit of 324.5 billion won for the second quarter of this year, representing increases of 25.2% and 97.6%, respectively, compared to the same period last year. These figures exceed the market consensus of 1.8172 trillion won in revenue and 287.6 billion won in operating profit. Kim noted, "The heavy industry sector will continue its solid performance due to the reflection of deferred shipments from the first quarter, while the construction sector will benefit from a base effect following last year's poor performance." The heavy industry sector is expected to achieve revenues of 1.3667 trillion won and operating profit of 302 billion won. Although some high-margin products, such as circuit breakers for the U.S. market, were recorded as inventory during transportation in the first quarter and did not contribute to performance, it is anticipated that these will generate approximately 100 billion won in revenue and about 40 billion won in operating profit in the second quarter. While the order environment remains favorable, new orders may decline compared to the substantial orders of 4.2 trillion won received in the first quarter. The construction sector is also expected to see improved performance, with projected revenues of 542.4 billion won and an operating profit of 22.5 billion won, marking a return to profitability. The removal of uncertainties regarding the collection of receivables from unsold officetels in Busan, which led to a provision for bad debts of about 24 billion won in the second quarter of last year, is expected to significantly enhance profitability. Kim highlighted solid state transformers (SST) as a long-term growth driver for Hyosung Heavy Industries. He explained that the demand for next-generation transformers, which can control power flow and quality, is increasing due to the expansion of AI data centers and direct current (DC) power networks. He stated, "Hyosung Heavy Industries completed the development of a 22.9 kV solid state transformer in 2022 and is currently conducting a demonstration project for power supply to data centers. Although it is still in the early stages of the business and its contribution to actual sales is limited, gradual results are expected to become visible after next year as the market expands."* This article has been translated by AI. 2026-06-11 08:12:00 -
IBK Securities Maintains Buy Rating and Target Price of 4.9 Million Won for Hyosung Heavy Industries IBK Securities has forecasted continued solid performance growth for Hyosung Heavy Industries, maintaining a target price of 4.9 million won and a 'buy' rating. Kim Tae-hyun, a researcher at IBK Securities, projected that Hyosung Heavy Industries will report consolidated revenues of 1.9091 trillion won and an operating profit of 324.5 billion won for the second quarter of this year, marking increases of 25.2% and 97.6%, respectively, compared to the same period last year. These figures exceed the market consensus of 1.8172 trillion won in revenue and 287.6 billion won in operating profit. Kim noted, "The industrial sector will reflect deferred volumes from the first quarter, while the construction sector will benefit from a base effect following last year's poor performance, leading to a robust performance trend." In the industrial sector, revenues are expected to reach 1.3667 trillion won, with an operating profit of 302 billion won. Some high-margin products, such as circuit breakers for the U.S. market, were recognized as inventory during transport in the first quarter, which affected performance. However, these volumes are anticipated to contribute approximately 100 billion won to revenue and about 40 billion won to operating profit in the second quarter. Although the order environment remains favorable, new orders may decrease compared to the first quarter, which saw large orders totaling 4.2 trillion won. The construction sector is also expected to show improvement, with projected revenues of 542.4 billion won and an operating profit of 22.5 billion won, indicating a return to profitability. The uncertainty surrounding the recovery of receivables from unsold officetels in Busan last year, which led to a provision of about 24 billion won, is expected to be resolved, significantly enhancing profitability. Kim highlighted solid state transformers (SST) as a key long-term growth driver for Hyosung Heavy Industries. He explained that the demand for next-generation transformers, which can control power flow and quality, is increasing due to the expansion of AI data centers and direct current (DC) power networks. He stated, "Hyosung Heavy Industries completed the development of a 22.9 kV solid state transformer in 2022 and is currently conducting a demonstration project for power supply to data centers. Although it is still in the early stages of the business and its contribution to actual revenue is limited, gradual results are expected to become visible after next year as the related market expands."* This article has been translated by AI. 2026-06-11 08:12:00
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World Cup: A Crucial Moment for South Korean Soccer The weight of the Taegeuk mark is heavy. On the international stage of the FIFA World Cup, where the eyes of soccer fans worldwide are focused, that pressure is magnified. The 2026 North and Central America World Cup kicks off on June 12 (Korean time). The World Cup is often described as a place not for gaining experience but for proving one’s worth. For the South Korean national soccer team, this tournament brings the need for such proof more than ever. Recently, South Korean soccer has faced numerous challenges. Criticism of the Korea Football Association has been relentless, particularly regarding the fairness of the selection process for head coach Hong Myung-bo, demands for action following the Ministry of Culture, Sports and Tourism's specific audit results, and a deep-seated distrust in the leadership of Korea Football Association President Chung Mong-kyu. Ongoing administrative chaos has led to painful critiques from both inside and outside the soccer community, and the fatigue and disappointment of fans supporting South Korean soccer have reached a peak. Compounding these issues are doubts about Coach Hong's leadership and tactical abilities. Since his appointment, he has faced criticism for failing to demonstrate a clear tactical identity. Observers have noted an over-reliance on the individual skills of European-based players rather than on detailed tactical strategies or systematic build-ups. On the world stage, the ability to adapt tactics and manage crises from the bench can be decisive in determining outcomes. Coach Hong's tactical limitations are seen as a significant source of instability for the team in the short-format World Cup. Some fans have even labeled the team as the “least promising” heading into this tournament. Ironically, the current team, led by captain Son Heung-min (LAFC), boasts many talented players. Individuals like Lee Kang-in (Paris Saint-Germain), Kim Min-jae (Bayern Munich), Lee Jae-sung (Mainz), and Jens Castrop (Borussia Mönchengladbach) possess skills that compare favorably to those of past World Cup squads. This makes the current turmoil even more painful. There is a growing sense of crisis among fans that the prime years of these key players, who are excelling in Europe’s top leagues, could be wasted due to administrative incompetence and a lack of tactical direction from the coaching staff. Despite the administrative chaos, concerns about the coaching staff, and the cold gaze of fans, the World Cup stage does not accommodate such circumstances. It is a venue for fair evaluation where excuses and justifications hold no weight. Soccer officials agree that it is time to set aside external turmoil and demonstrate value solely through performance. One soccer official stated, “There have been many controversies surrounding Hong Myung-bo’s team, and there are still tactical questions. However, as the World Cup approaches, the only way to quell these controversies is to prove ourselves through results. Only then can we win back the hearts of the fans who have turned away.” Regaining lost trust on the field will not be easy. However, this does not mean that the focus should solely be on immediate victories or advancing from the group stage to the knockout round. What matters is a convincing process and the quality of play, as much as the results themselves. Coach Hong must dispel the label of “lack of capability” that has followed him by showcasing a clear tactical identity and crisis management skills. Players need to demonstrate that, despite the controversies and administrative crises, the foundation of South Korean soccer remains intact and that the value of their hard work over the years is still strong. Now, the stage for the North and Central America World Cup is set. It is time to prove themselves on the field. Fans hope that the Taegeuk Warriors can put aside all controversies and burdens to showcase unwavering performance and unity, thereby affirming their worth.* This article has been translated by AI. 2026-06-11 08:09:00 -
World Cup: A Crucial Moment for South Korean Soccer The weight of the Taegeuk mark is heavy. On the global stage of the FIFA World Cup, that pressure is magnified. The 2026 North and Central America World Cup kicks off on June 12 (Korea time), and for the South Korean national soccer team, the need to prove their worth has never been more urgent. Recently, South Korean soccer has faced significant challenges. Criticism of the Korea Football Association has been relentless, particularly regarding the fairness of the selection process for head coach Hong Myung-bo, calls for action following the Ministry of Culture, Sports and Tourism's specific audit results, and a growing distrust in the leadership of Korea Football Association President Chung Mong-kyu. Administrative turmoil has led to sharp criticisms from both inside and outside the soccer community, and the fatigue and disappointment among fans have reached a peak. Doubts about Coach Hong's leadership and tactical abilities have compounded these issues. Since his appointment, he has faced criticism for failing to demonstrate a clear tactical identity. Observers have noted an over-reliance on the individual skills of players from European leagues rather than a systematic approach to tactics or build-up play. In high-stakes matches, the ability to adapt tactically and manage crises from the bench can be decisive. Many fans have even labeled the current team as the "least promising team" heading into this World Cup. Ironically, the current squad, led by captain Son Heung-min (LAFC), boasts many talented players. With individuals like Lee Kang-in (Paris Saint-Germain), Kim Min-jae (Bayern Munich), Lee Jae-sung (Mainz), and Jens Castrop (Borussia Mönchengladbach), the team's talent is comparable to any past World Cup squad. This makes the current chaotic situation even more painful. Fans are increasingly frustrated that the peak years of these key players could be wasted due to administrative incompetence and a lack of tactical direction from the coaching staff. Despite the administrative chaos, concerns about the head coach, and the cold reception from fans, the World Cup stage does not allow for excuses. It is a platform for fair evaluation, where performance is paramount. Soccer officials agree that it is time to set aside external turmoil and prove their worth through skill. One soccer official stated, "There have been many controversies surrounding Hong Myung-bo's team, and there are still tactical questions. However, as the World Cup approaches, the only way to silence the controversies is through results. Only then can we win back the hearts of fans who have turned away." Regaining lost trust on the field will not be easy. However, this does not mean the team should focus solely on immediate wins or advancing beyond the group stage. Equally important are the processes and quality of play that fans can understand and appreciate. Coach Hong must dispel the label of "lack of capability" by demonstrating clear tactical identity and crisis management skills. Players must show that, despite numerous controversies and administrative crises, the foundation of South Korean soccer remains strong and that the value of their hard work over the years is still intact. Now, the stage is set for the North and Central America World Cup. It is time to prove themselves on the field. Fans hope the Taegeuk Warriors can set aside all controversies and burdens to showcase unwavering performance and unity, affirming their worth.* This article has been translated by AI. 2026-06-11 08:09:00
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South Korean Ship Passes Through Strait of Hormuz Amid Ongoing Tensions The South Korean Ministry of Foreign Affairs announced on June 11 that one South Korean ship has successfully navigated through the Strait of Hormuz, which had been blocked due to the ongoing Middle East conflict. This marks the second instance of a South Korean vessel passing through the Strait, following the HMM tanker Universal Winner. The ministry stated, “The discussions regarding this passage were led by the foreign chartering company, and we understand that the vessel is now heading to a third country as its final destination.” The ship in question is a liquefied natural gas (LNG) carrier operated by a South Korean shipping company, reportedly carrying eight South Korean crew members. The passage of this vessel comes approximately 20 days after the Universal Winner exited the Strait. The Universal Winner, which was carrying 2 million barrels of crude oil, arrived at Ulsan Port the day before. The South Korean government coordinated with Iranian authorities to facilitate its passage. As a result, the number of South Korean vessels still trapped in the Strait of Hormuz has decreased to 24. Currently, there are a total of 139 South Korean crew members aboard foreign vessels in the region.* This article has been translated by AI. 2026-06-11 08:03:00 -
EDCF Plans to Approve 9 Trillion Won for AI and Supply Chain Support Over Three Years The Export-Import Bank of Korea is set to innovate the Economic Development Cooperation Fund (EDCF) to strategically utilize official development assistance (ODA). The bank aims to enhance transparency throughout the project process while focusing on AI, supply chains, and cultural sectors, planning to launch new projects worth 9 trillion won over the next three years to expand opportunities for Korean companies abroad. On June 11, the bank announced that it held the '2026 EDCF Innovation Strategy Report Meeting' in Seoul, attended by over 200 representatives from businesses, related organizations, and academia. The core objectives of the innovation strategy include strengthening transparency and accountability, concentrating on key areas such as AI, supply chains, and culture, and addressing challenges faced by Korean businesses in project implementation. To enhance public access to information, the bank will disclose key project details from the discovery phase through approval and evaluation. It plans to implement a policy name system and a project history system to document and manage decision-making processes, thereby eliminating the potential for undue external interference. The bank proposed a plan to approve a total of 9 trillion won in new EDCF projects from 2026 to 2028. It intends to focus resources on sectors where demand is high in developing countries and where Korean companies have competitive advantages, specifically in AI, supply chains, and culture. Additionally, the bank will pursue institutional improvements to expand participation opportunities for small and medium-sized enterprises (SMEs) in EDCF projects. It plans to strengthen negotiations with recipient countries to alleviate burdens arising from exchange rates and other factors during project implementation, including local cost localization contracts. Hwang Gi-yeon stated, "We will establish transparency and fairness as new standards for the EDCF, transforming it into a fund that the public can trust and rely on. We aim to broaden our economy through development cooperation that allows both large and small enterprises to grow together." 2026-06-11 08:03:00 -
AI Adoption in Retail: Large Firms Thrive While Small Businesses Struggle The use of artificial intelligence (AI) in the retail sector is expanding, but a growing divide exists between large retailers and small businesses. Major retailers are applying AI to key operations such as pricing, customer analysis, and inventory management, while many small retailers struggle to even begin the transition due to cost, workforce, and data infrastructure limitations.According to the retail industry, major companies like Lotte, Shinsegae, and Hyundai have established dedicated AI teams to broaden the scope of AI development and application. They are enhancing productivity and efficiency through demand forecasting, inventory optimization, and personalized recommendations based on their own customer, logistics, and sales data.In contrast, many small retailers recognize the need for AI but have not progressed to actual implementation. A survey conducted last year by the Korea Institute for Advancement of Technology on 4,300 small businesses with sales under 150 billion won found that only 0.9% of them used AI to identify and address problems.Furthermore, only 0.1% of respondents reported using AI for real-time problem identification and decision-making across the organization. A mere 2.8% indicated that some departments were able to identify and monitor issues.Notably, the utilization rate of AI in the retail and transportation sectors was reported at 0%. Despite the potential for AI to be applied in demand forecasting, pricing adjustments, and order automation based on sales, inventory, and customer data, actual implementation remains in its infancy.The low adoption of AI among small retailers is partly due to weak data foundations. The same survey revealed that 38.5% of all small businesses do not collect any data at all. While 57.8% collect some data, it has not translated into actual AI utilization. Effective AI application requires prior data collection, refinement, and analysis, but securing the necessary skilled personnel and budget is a common challenge.Small business owners face similar challenges. According to a survey released in November by the Seoul branch of the Korea Federation of Small and Medium Enterprises, only 9.7% of respondents reported using AI in their operations. Although they recognize the potential benefits of AI, the initial investment costs are a significant barrier. Among the surveyed businesses, 69.0% cited 'cost burden' as the reason for difficulty in adopting AI technology, followed by 'lack of knowledge and personnel' (30.7%) and 'difficulty integrating with existing systems' (23.0%).Industry experts warn that the disparity in AI adoption could widen productivity gaps among retailers. While large retailers enhance their pricing, inventory, and logistics operations, small businesses that remain reliant on manual processes may find it increasingly difficult to compete on cost and customer responsiveness.Kim Ik-sung, a professor at Dongduk Women's University and former president of the Korean Society of Retail Studies, stated, "The level of AI utilization among domestic small retailers is very low. Given the significant cost burden of AI adoption, continuous government support is necessary." He added, "Practical training and support for real-world applications must be implemented in tandem, as retailers that leverage AI will secure market competitiveness in the future."* This article has been translated by AI. 2026-06-11 07:51:00