Baemin "Exaggeration of Commission Increase... Delivery Fee Reduction Should Be Considered"

Woowa Brothers Issues Statement on the 14th Through Official Release

Woowa Brothers, the operator of Baedal Minjok, claimed that the assertion that the 'Baemin1 Plus' plan revision increased the commission burden on partner merchants by 44% is exaggerated, stating that it was adjusted to a level comparable to competitors.

On the 14th, Woowa Brothers released a statement saying, "The claim that 'the commission fee for partner merchants was increased by 44%' only reflects the change in the commission rate from 6.8% to 9.8%, a 3 percentage point increase, making the increase appear larger than it actually is."

Baedal Minjok announced that it will raise the brokerage fee borne by restaurant owners from the current 6.8% to 9.8% (excluding VAT) starting this August. On the 11th, a Baedal Minjok sticker was attached to a restaurant in Seoul. Photo by Jinhyung Kang aymsdream@

Earlier, the National Franchisee Association criticized on the 11th, stating, "Baemin's 44% increase in commission fees from 6.8% to 9.8% is a ruthless act that coldly ignores the desperate pleas of self-employed business owners."

Woowa Brothers emphasized, "In this fee revision, the increase in commission rates and the reduction in delivery fees were applied simultaneously," adding, "To accurately assess the change in merchant burden, the reduction of delivery fees borne by merchants by 100 to 900 KRW depending on the region must also be considered."

They further stated, "For orders ranging from 10,000 to 25,000 KRW, the total increase in merchant burden is approximately 0 to 7.9%." The total cost here includes commission fees, delivery fees borne by merchants, payment settlement fees, and value-added tax.

Woowa Brothers explained, "The revised Baemin1 Plus commission rate is the same as or lower than that of competitors, which have already applied such rates for several years and have been accepted in the market." They added, "A significant portion of merchant orders are covered by Ultra Call or Open List store delivery services," and clarified, "The fees for Ultra Call and Open List were frozen in this revision, and special discounts will be applied to some merchants with low order volumes and low advertising efficiency."