Baemin Takes the Lead as the First to Realize the 'Protocol Economy'

Ministry of SMEs and Startups and No. 26 Caring Company Business Agreement

At the 'Caring Company Business Agreement Ceremony' held on the 18th at Baemin Academy in Songpa-gu, Seoul, (from left) Kim Beom-jun, CEO of Woowa Brothers, Park Young-sun, Minister of SMEs and Startups, and Kim Im-yong, Acting President of the Korea Federation of Micro Enterprise Associations, signed the agreement and took a commemorative photo.

[Asia Economy Reporter Kim Cheol-hyun] Woowa Brothers, the company behind the delivery service 'Baedal Minjok (Baemin),' has committed to becoming the first model for realizing the protocol economy and has emerged as the 26th Caring Company. A Caring Company refers to a voluntary win-win cooperation enterprise that goes beyond traditional cooperation focused on partner companies by sharing its strengths such as capabilities and know-how with non-trading companies and small business owners.

The Ministry of SMEs and Startups (Minister Park Young-sun, hereinafter referred to as the Ministry) announced on the 18th that it signed a 'Memorandum of Understanding for Realizing the Protocol Economy through Win-Win Cooperation' with Woowa Brothers (CEO Kim Beom-jun) and the Korea Federation of Micro Enterprise (Acting President Kim Im-yong) at Baemin Academy in Songpa-gu, Seoul. The protocol economy refers to an open economy where market participants can freely create and participate under certain rules, emerging as a next-generation economic model that can overcome issues of data monopoly and closedness occurring on platforms.

Through this agreement, Woowa Brothers became the 26th company to be named a Caring Company by the Ministry since May 2019, which has been promoting the realization of values of coexistence and mutual growth. This was achieved as the first win-win model aligned with the ideology of the protocol economy, driven by Woowa Brothers' active will to grow together with small business owners using the platform.

Woowa Brothers first decided to cooperate with small business owners for fair platform operation. As the first step, they will invest 5 billion KRW to create a fund worth 50 billion KRW to support the purchase of store locations for small business owners who have been operating for over 10 years to ensure stable business operations. A Delivery Platform Win-Win Council, involving related private organizations and associations, will also be formed and operated to discover and specify ways to resolve difficulties faced by self-employed users of the platform and to achieve mutual growth with small business owners. Based on the discussions here, Woowa Brothers plans to establish support systems needed by small business owners in the field and fulfill their social responsibilities.

Platform data will be shared with both public and private sectors. Woowa Brothers will provide regional and industry-specific transaction information they possess to the Commercial District Information System operated by the Small Enterprise and Market Service so that small business owners can utilize it. Additionally, customized marketing analysis information will be provided free of charge to individual store owners and will be continuously enhanced. The educational programs operated by Baemin Academy will be expanded nationwide, and specialized on-site consultations will be offered to small business owners who complete the training. To ensure stable sales for small business owners, prepayment functions within Baedal Minjok will also be implemented.

Kim Beom-jun, CEO of Woowa Brothers, said, "During the COVID-19 crisis, Baemin has implemented various policies such as advertising and financial support and expanding online sales channels to provide practical help to small business owners," adding, "With this agreement, we will strive to become a platform that serves as a business safety net for partners including self-employed small business owners."

Park Young-sun, Minister of SMEs and Startups, said, "To resolve the side effects of the platform economy, it is essential to share information held by platforms and discuss ways to grow together by establishing fair rules," and added, "I hope the protocol economy will spread throughout society following this agreement."