The Korea Fair Trade Commission (KFTC) has launched an investigation into allegations that Baemin (Baedal Minjok) changed its advertising policy to the disadvantage of partner store owners and demanded most-favored-nation treatment.
According to industry sources on May 20, the KFTC sent investigators to the headquarters of Woowa Brothers, the operator of Baemin, the previous day to conduct an on-site investigation.
The KFTC investigators entered the office with an official notice stating that the purpose of the on-site investigation was to check for possible violations of Article 45 of the Monopoly Regulation and Fair Trade Act. They began securing related documents and materials.
The KFTC launched its investigation after receiving reports in March from organizations such as the People's Solidarity for Participatory Democracy and the store owners' association, claiming that the discontinuation of Baemin's advertising product 'Ultra Call' violated the Fair Trade Act.
The authorities are examining whether the shift from the fixed-rate advertising product Ultra Call to a commission-based advertising model significantly increases commission burdens for Baemin's partner store owners, thus constituting unfair disadvantage prohibited by the Fair Trade Act.
Internal documents related to the most-favored-nation treatment demand allegations are also under review. The most-favored-nation treatment allegation involves suspicions that Baemin forced partner businesses to lower food prices and various benefits to levels matching those of competing delivery apps.
Both Baemin and Coupang Eats have applied to the KFTC to initiate a consent decree procedure regarding these allegations.
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