Lee Jae-myung: "Restoring Baemin's commission to the original rate impossible? Show consumers something to fear"

Gyeonggi Province Governor Lee Jae-myung is speaking at the 'Countermeasures Meeting on Delivery App Monopoly and Unfair Trade' held at the Gyeonggi Provincial Government Office in Suwon, Gyeonggi Province, on the afternoon of the 6th. Photo by Yonhap News

[Asia Economy Reporter Kim Ga-yeon] Lee Jae-myung, Governor of Gyeonggi Province, criticized the delivery platform Baedal Minjok on the 7th regarding their statement that restoring the commission fees to their original rates is impossible, saying, "It seems they do not realize that the public and consumers can either save or kill a company."

On the same day, Lee posted on his Facebook under the title "What will happen to monopoly companies that exploit small business owners while ignoring the public?" and made these remarks.

Lee stated, "Can a company that simply monopolizes a platform and collects toll fees succeed while ignoring the public, who are infrastructure investors and owners of technological and cultural assets?" He added, "You cannot make money just by being greedy for money. We need to understand why successful companies engage in social contribution and ethical management, and reduce usage fees during difficult times to pursue coexistence."

He continued, "A movement has started to order by phone instead of through delivery apps, and to give incentives to stores for phone orders," urging the public to participate by saying, "Please show that consumers and the public are powerful."

Earlier, on the 6th, Kim Beom-jun, CEO of Baedal Minjok, issued a statement saying, "We humbly accept the criticism that we failed to consider the difficulties faced by restaurant owners due to the novel coronavirus (COVID-19) and apologize sincerely for introducing a new fee system."

In the statement, Kim said, "We announced a policy to refund half of the commission fees for March and April within a monthly limit of 150,000 won, but to reduce the immediate burden, we will refund half of the amount paid without any limit during April."

However, Baedal Minjok maintains that restoring the commission fees to their original rates is impossible.

Park Tae-hee, Executive Director of Woowa Brothers, the operator of Baedal Minjok, stated in an interview with CBS Radio's "Kim Hyun-jung's News Show" on the same day, "It is practically impossible to revert the commission fee system."

Park said, "The negative effects of flag planting are very clear," and added, "We believe it is reasonable to move towards a structure where the profits of business owners increase through an open service method, which in turn generates profits for us as well."