The South Korean government is establishing a consumer price management system utilizing artificial intelligence (AI) to address increased price volatility caused by extreme weather and the prolonged conflict in the Middle East. The initiative aims to collect and analyze real-time price information on processed foods and consumer goods while incorporating AI into the forecasting of agricultural and marine product supply and demand to enhance proactive response capabilities.
On June 18, a task force meeting on consumer price management was held at the Government Seoul Building, chaired by Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol. The meeting discussed the "Strengthening Measures for AI-Based Continuous Monitoring of Consumer Prices."
In light of the heightened price volatility due to extreme weather events such as heavy rain and heatwaves, as well as geopolitical instability from the Middle East conflict, the government has decided to implement a continuous monitoring system using AI technology. This system will enable rapid identification of price fluctuation factors and strengthen data-driven policy responses.
Initially, the government will continuously monitor price information for 13 processed food items, including ramen and bread, and 8 consumer goods, such as laundry detergent and toilet paper. After reviewing data availability, the final list of items will be confirmed in July, with plans to automatically collect price information from online shopping malls using web scraping and standardize unstructured data through AI.
Price fluctuation risk levels will be categorized as "stable, cautious, alert, and severe," reflecting the characteristics of each item. Current prices, percentage changes, and risk levels will be shared with relevant government departments. Research for this initiative will continue until November.
The scope of AI utilization will also expand to the management of agricultural and livestock products. The government plans to enhance AI-based production and price forecasting, currently applied to six items including apples, cabbage, and garlic, and implement successful models identified through private expert competitions for ten key items to improve price prediction accuracy.
AI will be introduced to the seafood sector for the first time. By 2029, an AI-based fishery observation system will be established to analyze the causes and spread of sudden price and quantity fluctuations in real-time, supporting policy decisions such as releasing stockpiled quantities or adjusting imports.
To enhance consumer information services, the government will develop a "Smart Shopping App" using generative AI to provide information on local prices and discounts for agricultural and livestock products, as well as optimal purchasing locations. This app will be piloted in five regions in the second half of the year. The price comparison service, previously focused on livestock products, will also expand to include agricultural products.
A government official stated, "AI will play a role in explaining price trends and analyzing fluctuation factors. Since it will extract only the necessary information from online price data, concerns about hallucinations—generating false or contextually irrelevant content—are minimal."
* This article has been translated by AI.
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