The South Korean government is establishing a consumer price management system utilizing artificial intelligence (AI) to address increased price volatility caused by climate anomalies and the prolonged conflict in the Middle East. The initiative aims to collect and analyze real-time price information on processed foods and consumer goods, while also incorporating AI into the forecasting of agricultural and fishery product supply and demand.
On June 18, a task force meeting on consumer price management was held at the Government Seoul Building, chaired by Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol, to discuss the "Strengthening Measures for AI-Based Continuous Monitoring of Consumer Prices."
In light of the heightened price volatility due to extreme weather events and geopolitical instability from the Middle East conflict, the government has decided to implement a continuous monitoring system using AI technology. This system will enable rapid identification of price fluctuation factors and enhance data-driven policy response capabilities.
Initially, the government will monitor price information for 13 processed food items, including ramen and bread, as well as 8 consumer goods, such as laundry detergent and toilet paper. The final list of monitored items will be confirmed in July after reviewing data availability, and price information from online shopping malls will be automatically collected through web scraping, with AI used to standardize unstructured data.
Price fluctuation risks will be categorized into four levels: "stable, caution, alert, and severe," reflecting the characteristics of each item. Current prices, percentage changes, and risk levels will be shared with relevant ministries. Research for this initiative is expected to be completed by November.
The use of AI will also be expanded into the management of agricultural and livestock products. The current AI-based production and price forecasting, applied to six items including apples, cabbage, and garlic, will be broadened. Additionally, successful models identified through a competition among private experts will be applied to ten key items to improve price prediction accuracy.
AI will be introduced to the seafood sector for the first time. By 2029, an AI-based fishery observation system will be established to analyze the causes and spread of sudden price and quantity fluctuations in real time, supporting policy decisions such as the release of stockpiled goods or adjustments in imports.
To enhance consumer information services, a "Smart Shopping App" will be developed using generative AI to provide local prices and discount information for agricultural and livestock products, as well as optimal purchasing locations. This app will be piloted in five regions in the second half of the year. The price comparison service, previously focused on livestock products, will also be expanded to include agricultural products.
A government official stated, "AI will play a role in explaining price trends and analyzing fluctuation factors," adding that the method of extracting only necessary information from online price data minimizes concerns about hallucinations, which refer to the generation of false or contextually irrelevant content.
* This article has been translated by AI.
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