Shipping Fee from 1500 Won... Incheon Launches 'Small Business Half-Price Delivery'

Incheon City has launched the 'Half-Price Delivery Service for Small Business Owners,' the first support project of its kind among local governments nationwide.

On the 28th, the city held an opening event for the 'Incheon Small Business Owners Half-Price Delivery Support Project' at Incheon City Hall Station, attended by Mayor Yoo Jeong-bok, Lee Seon-ok, the 1st Deputy Chairperson of the City Council, Hwang Gyu-hoon, President of the Incheon Small Business Association, and Cho Hyun-min, President of Hanjin. Mayor Yoo officially announced the launch of the project by personally receiving and sending the first half-price delivery.

Incheon Mayor Yoo Jeong-bok is sending the first half-price parcel at the 'Small Business Half-Price Parcel Support Project' opening event held on the 28th at Incheon City Hall Station on Incheon Subway Line 1.
[Photo by Incheon City]

This project supports delivery services at half the market price for local small business owners in Incheon. When small business owners drop off parcels to be sent to customers at the collection centers, the parcels are transported via subway and electric cargo vehicles to the collection points of existing delivery companies and then delivered to their final destinations.

Small business owners can use the half-price delivery service up to 120 times annually. Delivery fees are 1,500 KRW for standard delivery based on a package weighing up to 5 kg and measuring less than 100 cm, and 2,500 KRW for same-day delivery within the metropolitan area (Incheon excluding Ganghwa and Ongjin, Seoul, and Bucheon in Gyeonggi Province). Standard delivery is 2,000 KRW cheaper than the market average price (3,500 KRW), and same-day delivery (4,400 KRW) is 1,900 KRW cheaper. Pickup service from businesses is also about 25% cheaper than the market average, costing 2,500 KRW for standard delivery and 3,500 KRW for same-day delivery.

This project reduces delivery costs by consolidating small quantities of goods through collection centers utilizing the subway and signing unit price contracts with delivery companies. Until now, 70% of small business owners in Incheon sent about 10 parcels per month, making it difficult to contract with delivery companies. When contracts were made, they faced high unit prices and the inability to use same-day delivery, among other issues.

The city expects that supporting half-price delivery will increase the entry rate of small business owners into the online shopping market by 25% and boost annual sales by more than 10%. Additionally, by transporting logistics using the environmentally friendly subway, vehicle travel distances will be reduced by 13% compared to the existing delivery system, resulting in a carbon emission reduction effect of over 25%.

Incheon City plans to operate delivery collection centers at all subway stations starting July next year, expanding from the current 30 stations out of 57 stations on Lines 1 and 2. In March next year, the city will analyze the results of the first phase of the project, prepare cost-saving and efficient operation plans, and consider expanding the project to the second phase.

Mayor Yoo said, "About 50% of small business owners using the half-price delivery service are located within 300 meters of subway stations, so expansion to all stations is necessary. As this is the first project of its kind nationwide, we will carefully monitor the progress and prepare the second phase without any setbacks."

Meanwhile, Incheon City plans to create jobs for the elderly through this project. This year, in collaboration with the Senior Workforce Development Centers in Michuhol-gu, Yeonsu-gu, and Bupyeong-gu, 50 elderly workers will participate as supporters at each station's collection center, working alongside young people. Next year, the city intends to increase the number of elderly participants.