On the afternoon of Apr. 21, a self-service photo studio in Seoul’s Myeong-dong district was bustling with foreign tourists, despite it being a Monday. Half of the studio’s six booths were occupied. Within a 500-meter radius of Myeong-dong Station, approximately a dozen unmanned photo studios are operating successfully. Instructions available in English, Chinese, and Japanese have made it easy for tourists to navigate the booths and make purchases. An industry official said that some unmanned photo studios in Myeong-dong, a hub for foreign visitors, and near Hongik University Station, known for its dense young foot traffic, rank among the top 10 stores nationwide in sales, noting, “There are locations recording daily sales of up to 10 million won ($ 7,300).”
With sluggish domestic demand forcing more small businesses to shutter, aspiring entrepreneurs are flocking to unmanned store openings. The number of unmanned stores across South Korea is estimated to have surpassed 10,000 this year. These businesses, which allow customers to pay without staff assistance, benefit from lower labor and operating costs, making them an appealing model for what has become known as “recession-style startups.” As of last month, 9,300 unmanned franchise stores were registered on portal sites, and including individually operated stores, the total is believed to exceed 10,000. According to a study released by Samsung Card on Apr. 28, which tracked unmanned franchises nationwide from 2020 through early 2025, the number of unmanned stores has quadrupled (+314%) over the period. In contrast, the overall number of all franchise stores grew by just 8%, underscoring the explosive expansion of the unmanned retail sector.
The relatively low cost of entry and a product lineup geared toward younger consumers have drawn a significant number of entrepreneurs in their 20s and 30s, who now account for 30% of unmanned store owners.
According to Statistics Korea, the lodging and food service index, based on sales, has failed to register growth for 22 consecutive months since May 2023, marking the longest slump since the index began in 2020. Against this backdrop, unmanned stores have emerged as a textbook example of “small-capital, recession-driven startups.” Data from the Ministry of SMEs and Startups show that the average startup cost for small businesses in South Korea stands at 89 million won ($65,000), while unmanned stores can require initial investments starting at around 30 million won ($22,000). However, many of these businesses depend heavily on a single owner and are primarily driven by livelihood needs rather than active business development.
Unmanned stores are heavily concentrated in five sectors: coin laundries, ice cream shops, study cafés, photo studios, and meal kit outlets. These businesses typically attract younger customers and have relatively low spending per visit. As of January, coin laundries accounted for 34% of unmanned stores, followed by ice cream shops at 29%, photo studios at 21%, study cafés at 12%, and meal kit stores at 4%.
Industry clustering by neighborhood was also pronounced. Near Hongik University Station, 52% of unmanned stores were photo studios. In Daechi-dong, a district known for its dense concentration of private academies, 68% of unmanned stores were study cafés. In Sillim-dong, home to many young renters and students, 44% of unmanned stores were coin laundries.
Park, a 37-year-old office worker living in Seoul’s Dongjak-gu, invested about 40 million won ($29,000) in April 2023 to open a 23.14-square-meter unmanned café inside an apartment complex. Despite diligently managing the café before and after work, Park closed the business after less than two years, incurring a loss of approximately 15 million won ($11,000).
“I expected to earn an additional 3 million won ($2,200) per month on top of my salary, but actual sales fell short,” Park said. “When another unmanned café opened in the same building, my monthly revenue dropped below 1 million won ($730), and I had no choice but to shut down.”
Despite the surge in the number of unmanned stores, sales growth has failed to keep pace. Overall offline franchise sales rose 17% in January compared to 2022, but growth among unmanned stores lagged significantly. Coin laundries and study cafés recorded modest gains of 10% and 3%, respectively, while photo studios saw a 2% decline, ice cream discount stores fell by 10%, and meal kit shops plunged by 33%.
An industry official said, “The gap between top-performing stores and struggling stores is very wide,” adding, “Many stores that sprang up like mushrooms after COVID-19 are now facing the risk of closure.”
Within small business communities, a common saying has emerged: “If you can close an unmanned store without falling into debt, you’ve succeeded.”
