[Report] "People Only Give Orders, Robots Do the Work"... Visiting Korea's Largest Logistics Exhibition

Visit to Korea's Largest Comprehensive Logistics Exhibition 'International Logistics Industry Fair'
Focus on SMEs Targeting the Global Market with Indigenous Technology

[Asia Economy Reporter Kim Bo-kyung] 'Automation, unmanned operation, autonomous driving robots.'

These are the three key themes of Korea's largest comprehensive logistics exhibition, the '11th International Logistics Industry Fair.' Held at KINTEX in Ilsan from the 25th to the 28th, this expo took place amid significant changes in the logistics industry due to the COVID-19 pandemic. With the expansion of online and contactless transactions and improvements in the import-export market, enthusiasm for 'logistics innovation' was intense. Small and medium-sized enterprises boasting world-class domestic technology challenged the global logistics market.

The star of this exhibition was undoubtedly the autonomous driving robots. Their ability to freely navigate spaces and efficiently transport goods was enough to captivate visitors and buyers alike. The day when robots and machines fully replace strenuous labor, menial tasks, and repetitive logistics work seems near. Representatives from small and medium-sized distribution companies, struggling with workforce supply due to rising labor costs such as minimum wage increases, also showed interest. Autonomous driving robots can be utilized not only in logistics warehouses and smart factories but also in various fields such as hospitals and schools.

Daejeon-based startup Twinny's autonomous driving robot can operate without any special infrastructure or floor markings. A distinctive feature is that users can remotely request robot transport tasks through a mobile application. Recognized for its differentiated technology, Twinny successfully raised 17.5 billion KRW in Series B funding last month. The company aims to grow into a unicorn with a corporate value of 1 trillion KRW, as well as pursue an initial public offering (IPO).

Motion Device also developed a logistics robot capable of handling a maximum load of 1 ton using purely domestic technology. A Motion Device representative said, "Unlike other companies that import equipment from China and sell it, we developed both product manufacturing and control functions ourselves," adding, "It is mainly used in factories and logistics warehouses that produce small quantities of various products."

Tirayutec started robot development three years ago. They mainly manufacture robots and equipment used in logistics warehouses and factories. Their design features six wheels that always remain in contact with the ground, enabling stable logistics transport regardless of ground conditions. A Tirayutec representative said, "Our robots are used at construction sites where 1-ton cargo must be transported up a 10-degree slope, as well as in semiconductor factories requiring precise movements."

Meanwhile, parcel items were moving in perfect order along conveyor belts, undergoing barcode scanning before sorting and classification. Taesung System, a small and medium-sized enterprise established in 2016, specializes in manufacturing and installing sorting (automatic classification) systems. Taesung System has received love calls from domestic logistics companies such as CJ Logistics and Coupang due to its simple structure and space-efficient design. Last year, it succeeded in securing orders for its 'wheel sorter system,' which uses wheels to sort parcel boxes by delivery region, from overseas e-commerce companies in the UK, France, and South Africa.

Jeon Won, CEO of Taesung System, said, "As online transactions become more active and cargo volume increases, it becomes difficult to process without automating sorting systems, and labor costs also rise significantly. Interest in sorting systems that can reduce costs and improve logistics processing efficiency has grown considerably."

Additionally, at the event, machines and equipment applicable to smart factories stood out, such as those that can check product defects in real-time to increase productivity or unmanned forklifts equipped with artificial intelligence (AI) technology.

Automation systems using deep learning technology to recognize the size, volume, barcodes, and text of items and quickly transport them to the desired delivery location proved effective in enhancing logistics processing efficiency.

There were also companies swiftly responding to the global ESG (Environmental, Social, and Governance) management trend. FMS Korea, a leader in the cold chain sector, supplies eco-friendly cooling containers and packaging materials to distribution companies.

Logistics equipment manufacturer Alporter has entered the export pallet rental business. Currently, wooden and plastic single-use pallets in circulation are entirely discarded after unloading, classified as industrial waste, and incur disposal costs. An Alporter representative explained, "By recovering and reusing aluminum pallets as an alternative to single-use pallets, we can achieve up to 40% cost savings and environmental protection, killing two birds with one stone."