Era of Major Transformation... Distribution Industry in Crisis Must Move Beyond Survival to Innovation

2025 Spring Academic Conference of the Korea Distribution Science Association
Discussing Strategies for Building a Sustainable Ecosystem and Enhancing Resilience

"This is not a matter of innovation, but a matter of survival."

Professor Jin Yong Park of Konkuk University is delivering the keynote speech at the special session of the 2025 Spring Academic Conference of the Korea Distribution Science Association. Photo by Korea Distribution Science Association

The 2025 Spring Academic Conference of the Korea Distribution Science Association was held on April 18 at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul. Industry professionals and academic experts in the domestic distribution sector shared their perspectives under the theme of "Reinvigorating the Distribution Industry: Building a Sustainable Ecosystem and Enhancing Resilience," unanimously agreeing that the crisis facing the distribution industry is more severe than ever before.

They diagnosed that the entire distribution sector is undergoing a period of major transformation, citing several factors: weakened consumer sentiment due to high inflation and high interest rates, the deterioration of the offline environment as the online market has expanded since COVID-19, and the intensifying offensive of Chinese e-commerce in the Korean market. In this context, participants sought breakthroughs through practical discussions on regulations and systems surrounding the distribution industry, crisis and innovation cases, and the future-oriented technological ecosystem.

Jin Yong Park, professor at Konkuk University, who delivered the keynote speech, advised, "Retail cannot innovate if it does not survive," and emphasized, "We must seek ways to evolve while maintaining business continuity." Specifically, he stressed the necessity of investing in digital transformation to enhance the customer experience. He added, "Consumers experience products at offline stores, compare them online, and then make purchases," and suggested that "companies need to consider building infrastructure to attract these consumers to their own online channels, rather than to other platforms."

At the special session of the 2025 Spring Academic Conference of the Korea Distribution Association, Professor JinYong Park of Konkuk University (left), KyungDo Park, President of the Korea Distribution Association (center), and ChangHeon Kwak, Head of Sustainable Management Division at GS Retail, are posing for a commemorative photo. Provided by Korea Distribution Association.

Changheon Kwak, Executive Director and Head of Sustainable Management Division at GS Retail, gave a presentation on "Concerns for the Survival of the Distribution Industry," pointing out, "Since COVID-19, prices have risen sharply and real incomes have declined, leading to decreased consumption in the retail market." He continued, "Distributors are facing difficulties on both sides, as it is difficult to pass on price increases from suppliers or manufacturers to consumers."

He also addressed regulatory issues surrounding the offline distribution sector, saying, "So far, regulations on the distribution industry have focused on coexistence, such as prohibiting large corporate distributors from entering areas near traditional markets." He noted that "now, as the 'introverted economy'?where consumers minimize outdoor activities and shop online?has become prevalent, the relationship has shifted to one where traditional merchants and offline distributors must seek survival together." He advised, "It is desirable for large distributors to provide infrastructure with their capital strength, while self-employed business owners fill in the detailed content, pursuing a symbiotic relationship."

Hwejin Yoon, Executive Director at Lotte Mart, expressed a similar view during an academic session on "A Sustainable Distribution Ecosystem?Balancing Innovation and Regulation." He stated, "Large supermarkets contribute to revitalizing small and medium-sized enterprises and the local economy by purchasing and selling local products," and added, "Innovation is not something special; we must solve immediate issues first and create an environment where fair competition is possible."

At the 2025 Spring Academic Conference of the Korea Retail Society, Changheon Kwak, Head of Sustainable Management Division at GS Retail, is delivering the keynote speech. Photo by Korea Retail Society

The academic conference consisted of a total of nine sessions, including a keynote speech by Kinoshita, President of the Japan Society of Distribution Science, a distribution data session, and a special session. The event was conducted in the form of an "industry-academia integrated session," where professionals from industry and academia presented and discussed together in a single session. In these sessions, industry experts and academic researchers participated in presentations and discussions without distinction between presenters, marking a new attempt that differentiated the event from traditional academic conferences focused solely on scholarship.

Kyungdo Park, President of the Korea Distribution Science Association and professor at Sogang University, stated, "This spring academic conference is significant in that it goes beyond simple research presentations to serve as a platform where on-site experience and academic insight are organically connected, opening up real possibilities for collaboration between industry and academia." He added, "Through this, we hope to make a meaningful contribution to shaping the future of the distribution industry."

Meanwhile, since its founding in 1995, the Korea Distribution Science Association has continued a variety of activities?including academic conferences, workshops, and policy proposals?to promote academic research and practical cooperation in the field of distribution.