Suspected 'Fee Trick' by Baemin Charging Fees on 'Free Coupons' Contrary to Terms

"Franchise Owners Must Provide Direct Evidence of Their Share of Burden"

The delivery app 'Baedal Minjok (Baemin)' has been accused of charging commissions on amounts discounted by free coupons, contrary to its terms and conditions.

On the 18th, JTBC reported that Baedal Minjok imposed a brokerage commission of 9.8% on the amount before the free coupon discount. For an order of chicken priced at 27,000 KRW with a 3,000 KRW free coupon applied, the actual sales amount is 24,000 KRW, but Baedal Minjok charged a 9.8% brokerage commission on the full 27,000 KRW. Effectively, the commission rate rose to 11%.

Free coupons are structured so that the store owner and the franchise headquarters share the burden. Although the burden of commissions and costs related to free coupons is increasing, it is not easy to stop distributing coupons. Chicken franchise store owner Mr. A said, "There are 10 (chicken) brands within a 1 km radius, and if I alone do not offer discounts, it is reasonable to think that there will be no sales at all," adding, "If I don't offer discounts, I can hardly do business that day."

The bigger issue is that Baemin's terms state that "coupons issued by the store owner are deducted" when calculating commissions, but there are suspicions that Baemin is violating the terms and using tricks to charge commissions. An industry insider told JTBC, "Since (Baemin's) commission revenue is decreasing, they seem reluctant to deduct it first." Park Sang-hyuk, a member of the National Assembly's Political Affairs Committee from the Democratic Party, criticized, "Even if many sales are made using coupons, franchise owners have to prove those costs and settle accounts," adding, "Meanwhile, headquarters and platform companies are profiting while sitting back."

Regarding this, Baemin explained, "Franchises do not disclose how much the store owner bears through coupons," and added, "If they inform us individually, we will deduct it." This issue was also discussed in the win-win cooperation council, but no conclusion has been reached yet.