Written by 11:44 AM Economics

Small business owners say, “We’ve reduced 1.2 employees through kiosks, saving 1.38 million won per month.”

**Midsize Business Association Surveys 402 Kiosk-Using Companies: “Burden of Installation and Operational Costs”**

In Seoul, reporter Kang Ae-ran from Yonhap News reports that small business owners using kiosks (unmanned information devices) have seen the effect of saving labor costs by reducing approximately one employee. According to a survey conducted by the Midsize Business Association on 402 businesses employing kiosks like restaurants, cafes, and PC rooms, 93.8% responded that “the introduction of kiosks is beneficial to management.”

The benefits cited for kiosks include reduced labor costs and decreased workload. Among the 294 companies that reported reduced labor costs, they averagely cut the workforce by 1.2 employees, reducing monthly labor costs by approximately 1.38 million won.

However, 29.6% of the companies reported facing difficulties with kiosk operations, mainly due to issues such as order errors, inability to contact customer service during late hours, lack of digital skills making usage difficult, and customer complaints.

Additionally, 61.4% of the respondents expressed that kiosk installation and operational costs are burdensome. The average purchasing cost of a kiosk is about 3.56 million won for stand type and about 1.33 million won for table type. If leased, the monthly rental costs average around 100,000 won for a stand type and 190,000 won for a table type. For franchise businesses, 96.3% of the 108 respondents said they bore the installation costs themselves without any contributions from the headquarters.

Necessary government support related to kiosks, as cited by the companies, includes training on kiosk utilization targeted at small business owners, guidance for customers on how to use kiosks, subsidies for kiosk maintenance and service support expansion, and regulations on kiosk fees.

Moreover, 85.6% of responding companies were unaware of the impending mandatory installation of barrier-free kiosks set to be enforced from January 28 next year. Under the amended Disability Discrimination and Relief Act, businesses with fewer than 100 employees are required to install and operate kiosks that are convenient for use by individuals with disabilities and the elderly.

Small businesses have requested exemptions from this mandate for micro-enterprises and increased subsidies for installing barrier-free devices.

Visited 1 times, 1 visit(s) today
Close Search Window
Close