The Democratic Party pushes for a 50% reduction in 'Baedal App' fees... Kim Jin-pyo calls it "the second rent"

[Image source=Yonhap News]

[Asia Economy reporters Wondara and Heo Midam] The Democratic Party of Korea is pushing to reduce the commission fees of delivery app companies such as Baedal Minjok by 50% to share the burden of the novel coronavirus infection (COVID-19).

On the morning of the 30th, Kim Jin-pyo, head of the Democratic Party's COVID-19 National Crisis Overcoming Committee Economic Countermeasures Headquarters, said at the Democratic Party Election Commission-COVID-19 National Crisis Overcoming Meeting held at the National Assembly, "Delivery app commissions are the 'second rent,'" adding, "Efforts from related organizations such as the Fair Trade Commission are urgently needed to reduce the delivery app commissions borne by small business owners to about half of the current level."

Kim pointed out, "With DH Delivery Hero, which acquired Baedal Minjok, expected to occupy more than 90% of the domestic delivery app market, restaurant owners are concerned about monopolistic abuse," and added, "Since the occurrence of COVID-19 confirmed cases, the number of orders through delivery apps has reportedly increased by more than 40% on average."

He continued, "Restaurant owners cannot avoid paying for option advertisements, known as 'flag planting,' which are used to promote higher exposure on delivery apps, in addition to the basic commission fees. As a result, they bear commission fees amounting to well over 10% of their sales," emphasizing, "Delivery app commissions have become the 'second rent.'"

He then said, "Everyone is sharing the pain to overcome COVID-19," and added, "Following the recent heartwarming 'Good Rent' movement, the 'Good Consumer' movement is spreading. I hope people will also participate in the 'Order Directly from Store Movement,' even if it is a bit inconvenient, to support small business owners."

Regarding the current status of financial support for small business owners, he said, "So far, only about 10% of small business owners who applied for loans have received support, but improvements will be made more quickly starting April 1." He added, "For small business owners with credit ratings from 1 to 3, loans will be processed within five days, and for those rated 4 or below, this has been implemented since the 25th. To reduce bottlenecks, an odd-even system will be implemented starting the 1st."