[Comprehensive] Lee Jae-myung "Baedal Minjok's Monopoly Abuse... Will Immediately Develop a Public Delivery App"

Lee Jae-myung Criticizes Baedal Minjok: "Just Because You Have Some Power... Monopoly Abuse Begins"

Governor Lee Jae-myung of Gyeonggi Province [Image source=Yonhap News]

[Asia Economy Reporter Han Seung-gon] Lee Jae-myung, Governor of Gyeonggi Province, criticized the change in the commission fee structure by 'Baedal Minjok,' the number one delivery app company, as monopolistic tyranny, and proposed the development of a public delivery app, taking immediate action.

In a post on Facebook on the 5th, Governor Lee pointed out, "At a time when self-employed workers are suffering greatly, delivery app companies like Baedal Minjok are exploiting their monopolistic position to pursue excessive profits through unilateral fee increases, driving self-employed workers into ruin."

He stated, "Suppressing monopolies and abuses of power that disrupt fair market economic order is the responsibility not only of the Fair Trade Commission but also of all government agencies, including local governments," adding, "While resolving this through legislation is most desirable, without waiting for that, Gyeonggi Province will start with what it can do immediately, such as developing a public app."

Regarding the plan to develop a public delivery app, he said he had spoken with Kang Im-jun, Mayor of Gunsan, and received consent to jointly use the trademark 'Baedal-ui Myeongsu' recently developed by Gunsan City, and that they would seek help from experts in this field.

Regarding the monopoly controversy surrounding 'Baedal Minjok,' Governor Lee explained that on the afternoon of the 6th, he plans to hold an emergency meeting with public institutions such as the Gyeonggi Market and Commercial Promotion Agency, Gyeonggi Province Corporation, and Gyeonggi Content Agency, as well as related departments, to review the current situation and finalize response measures including the development of a public app.

Baemin Riders Photo by Yonhap News

Earlier, on the 4th, Governor Lee criticized 'Baedal Minjok' in a post on his Facebook, saying, "Is it acceptable to cause harm to the powerless majority and gain unfair profits just because you have some power in an already difficult situation?"

His criticism was in response to the fact that on the 1st, 'Baedal Minjok' changed its commission fee system from a fixed-rate to a percentage-based system, leading small business owners to complain that "compared to the fixed-rate system with a capped amount, the percentage-based system causes commissions to increase exponentially according to sales scale, which is a heavy burden for small business owners."

Governor Lee summarized the opinions of netizens, saying, "They requested to create a public app like Gunsan's 'Baedal-ui Myeongsu,' entrust its operation to cooperatives or social enterprises, organize delivery workers (riders), and support safety nets such as insurance, thereby promoting publicness in the delivery order sector, employment stability, and protection of small business owners simultaneously."

Regarding some criticisms that it is inappropriate for the state to criticize and intervene in corporate operations, he said, "There were suggestions to verify through local income tax audits, demand fair investigations and reviews from the government and the Fair Trade Commission, and push for legislation to limit fees. There were also comments telling me to focus on quarantine or calling me a communist," adding, "However, the Governor of Gyeonggi Province is not a fool; such multitasking is entirely possible, and since the U.S. even orders the breakup of monopolistic companies, the claim that this is communism is not worth refuting."