[In Conversation with Top CTOs] ⑪ Junghee Kim, Head of TES Logistics Technology Research Center at CJ Logistics: "AI to Be Introduced at All Logistics Sites Within 5 Years"

AI Application in Loading, Sorting, and Picking Raises Productivity by 50%
"Securing Large Volumes of Data Is Key for AI Training"

Editor's NoteKorea's industry is facing a comprehensive crisis. The business environment is deteriorating due to a combination of soaring raw material prices, the restructuring of global supply chains, and escalating US-China trade conflicts. Ultimately, the key to overcoming this crisis lies in technology. Technology is the lifeline and very reason for a company's existence. This is why the role of Chief Technology Officer (CTO) is being emphasized more than ever. CTOs are no longer just developers of new technologies; they have established themselves as strategists who analyze changing markets and present future visions for their companies. Asia Economy has met with CTOs from major Korean companies to hear about the core technologies and differentiation strategies each industry is focusing on. Through the technology strategies of these leading companies, we seek ways to enhance the competitiveness of Korean industry and create future value.

Junghee Kim, Head of TES Logistics Technology Research Center at CJ Logistics, emphasized in an interview held on the 14th at CJ Logistics headquarters in Jongno-gu, Seoul, that "the logistics business will become a battleground for artificial intelligence (AI) and humanoid technologies in the future." CJ Logistics

Junghee Kim, Head of the TES Logistics Technology Research Center at CJ Logistics, asserted that the future logistics industry will be "a battleground for artificial intelligence (AI) and humanoid technologies." In his view, as the logistics industry intensifies its competition for speed?such as with same-day delivery?there are clear limits to relying on labor, making technological breakthroughs inevitable.

The TES Logistics Technology Research Center, established in 2020, is at the core of CJ Logistics' logistics innovation. Its name comes from the initials of Technology, Engineering, and System & Solution.

In an interview with Asia Economy on the 14th at CJ Logistics' headquarters in Jongno, Seoul, Kim explained, "Advanced technologies such as AI and robotics not only create new industries in themselves, but fundamentally play a key role in making existing legacy industries more efficient. Since logistics is the foundation of all industries, it is a highly promising field for the integration of advanced technologies."

CJ Logistics has already introduced automated guided vehicles (AGVs) that autonomously move along optimal routes to reduce unnecessary worker movement, autonomous mobile robots (AMRs) that drive themselves and search for optimal paths, and the cube-shaped warehouse automation system 'AutoStore,' which enhances the efficiency of limited logistics spaces.

Kim emphasized, "There are numerous processes in logistics, such as loading and unloading, sorting, picking, and transportation. We are conducting research and on-site implementation with the concept of automating each process. When AI, robotics, or automation equipment is applied to a single process, productivity can be increased by up to 50%."

CJ Logistics Yongin Center

He stated, "AI and humanoids are rapidly transforming the logistics industry," and added, "We plan to introduce AI capable of independent judgment and action in every logistics site within five years." If logistics operations become faster, the time from order to delivery can be significantly reduced. As work becomes more efficient, costs can also be lowered. This benefits both companies and consumers alike.

Kim identified data as a field where technological differentiation is possible. He said, "For AI or humanoids to be competitive in the field, a vast amount of data must first be secured. The technical gap depends on who can train their systems with more data." To illustrate the importance of logistics data, he used the example of cosmetics.

"Every newly launched cosmetic product has a different shape. For a piece-picking robot to pick up and move variously shaped cosmetics, it must continuously relearn. The more types of products there are, the better the robot can recognize and handle them through learning, without missing any."

CJ Logistics AutoStore

With the power of AI and data, it is possible to respond to countless orders in a customized manner. He explained, "Cosmetics customers each order different combinations of products?sometimes A, B, and C, or A, D, and E. With thousands of customer orders, the logistics center faces the challenge of determining the optimal sequence for retrieving each product." He added, "The technology that solves the problem of how to transport these items efficiently is facility optimization."

Do employees feel resistance to automation? He responded, "Since there is a general understanding that automation and optimization are necessary to improve company profit margins, employees are quite cooperative. Most accept it, as automation and optimization also improve work efficiency."

As e-commerce grows, competition in the logistics market is heating up. Powerful players like Coupang, which operate both e-commerce and logistics, have emerged, and Naver is also strengthening its logistics services to target the e-commerce market. Although these companies are currently business partners of CJ Logistics, there is concern that logistics companies could become subordinate in the long term.

He explained, "CJ Logistics' role is to help e-commerce companies reduce their logistics burdens and focus on their core business, thereby enhancing their competitiveness."

Junghee Kim, Head of TES Logistics Technology Research Center at CJ Logistics, emphasized in an interview held on the 14th at CJ Logistics headquarters in Jongno-gu, Seoul, that "the logistics industry will become a battleground for artificial intelligence (AI) and humanoid technologies in the future." CJ Logistics

CJ Logistics has recently begun joint development of an "AI-powered mobile dual-arm robot for logistics" with Rainbow Robotics. Kim stated, "This marks the start of actively introducing humanoids to logistics sites," and added, "We plan to complete field demonstrations within this year to ensure that the robots deliver efficiency in practice."