Kim Won: "Delivery Platform Commission Adjustment Plan is a 'Josam Mosa'"

Coupang Eats and Baemin Pass Delivery Fees to Small Business Owners
"Mediation Proposal Should Reflect Small Business Owners' Perspectives"

Representative Kim Won-i making an inquiry.
[Photo by Kim Won-i's Office]

A win-win council composed of delivery platforms, the dining industry, and public interest commissioners has failed to reach an agreement on brokerage fees, and the platform companies' adjustment proposals have been criticized as a 'Josam-mosa' suggestion far from true coexistence.

At a recent win-win council meeting, Coupang Eats reportedly proposed lowering the commission fee from 9.8% to 5%, while having the participating stores and delivery companies share the delivery fees for Wow members (paid membership) that Coupang previously bore. Baedal Minjok proposed a tiered commission fee: 9.8% for stores within the top 60% of sales, 6.8% for the 60-80% range, and 2% for the 80-100% range.

On the 25th, Kim Won-i, a member of the Democratic Party of Korea (Mokpo), criticized Coupang Eats' adjustment plan as a "Josam-mosa-style proposal," stating, "Among the 21 million Coupang members, 14 million are Wow members, accounting for 66.7% of paid members. While they say they will reduce the commission fee, they are shifting the delivery fees onto small business owners and delivery companies."

Regarding Baedal Minjok's adjustment plan, he expressed concern that "differential commission fees without a basic commission reduction are only half measures," adding, "Stores such as chicken, pizza, and Chinese restaurants, which generate most of their sales from delivery, as well as franchise stores with relatively high sales, will not benefit at all from the commission fee reduction."

Meanwhile, Rep. Kim emphasized, "The average operating profit margin of dining businesses in our country is about 11%, but the 9.8% commission fee and advertising costs from delivery platforms are major causes of worsening management," and stressed, "If the win-win council fails to reach an agreement, the Ministry of SMEs and Startups must strongly push for a mediation plan that actively reflects the position of small business owners."