Gyeonggi-do Promotes Activation of Private Delivery Apps Offering Brokerage Fees Below 2%

Increased Sales Through Connection to Gyeonggi Local Currency Payment System... Recruiting Private Delivery Apps
Support Expected for Small Business Owners Facing Profit Structure Deterioration Due to High Brokerage Fees

Gyeonggi Provincial Government Building.

Gyeonggi Province is taking steps to revitalize the private delivery app market that operates with brokerage fees of 2% or less to support small business owners whose profit structures are deteriorating due to high brokerage fees (9.8%) and delivery costs imposed by private app companies.

On the 16th, Gyeonggi Province announced that it will publicly recruit private-public partnership affiliated delivery app operators with these conditions until the 25th of this month.

All delivery app operators offering brokerage fees of 2% or less can apply, and those who score above a certain threshold based on an internal evaluation will be selected as operators. The contract period is two years, and the selected private public delivery app operators will be able to use the Gyeonggi local currency payment system.

The province cited the activation of delivery apps with brokerage fees of 2% or less as the background for introducing this project.

In Korea, there are private delivery app operators that claim brokerage fees of 2% or less, and the intention is to expand the private delivery app market with brokerage fees of 2% or less through collaboration between these companies, Gyeonggi Province, and Gyeonggi Corporation.

According to the province, if private delivery apps with brokerage fees of 2% or less use the Gyeonggi local currency payment system, it will not only increase sales for these private delivery apps but also promote the use of local currency. As sales of private delivery apps with fees of 2% or less increase, their usage will naturally rise, which can reduce the high brokerage fee burden on small business owners.

Additionally, private delivery app operators selected for the project will have opportunities to participate in social contribution activities for small business owners.

Seol Jong-jin, Director of Corporate Development at Gyeonggi Province, said, “There is no budget allocated for this partnership,” adding, “We hope this project will serve as a buffer zone for the unresolved brokerage fee rates between large delivery app platforms and franchise stores, and further become the first step toward lowering delivery app fees.”

Private businesses wishing to participate in the Gyeonggi Province private-public partnership delivery app affiliation recruitment can apply through the Corporate Development and Corporate Policy Team of Gyeonggi Province until the 25th.