[2025 Audit] "Is There a Will for Mutual Growth?"... Delivery Platforms Face Heavy Criticism

Excessive Commission Fees and Unfair Terms Under Scrutiny
Fair Trade Commission Orders Corrective Action for Baemin and Coupang Eats
Ministry of SMEs and Startups: "Survey Underway Throughout October"

On October 14, during the National Assembly inspection by the Industry, Trade, Energy, SMEs, and Startups Committee, lawmakers strongly criticized major food delivery platforms. Excessive commission fees and unfair contract terms, which increase the burden on small business owners, were all brought into question at once.

On this day, the committee called Kim Beomseok, CEO of Woowa Brothers, as a witness for questioning.

Independent lawmaker Kim Jongmin, citing data from the Bank of Korea, pointed out, "The higher the proportion of delivery sales among small business owners, the lower their operating profit tends to be. When delivery accounts for 50% of sales, the operating profit margin drops to as low as 16%." He added, "It is necessary to analyze why profitability worsens as delivery volume increases."

Kim Myungkyu, CEO of Coupang Eats (left), and Kim Beomseok, CEO of Woowa Brothers, are listening to lawmakers' questions during the National Assembly's Political Affairs Committee audit on the Fair Trade Commission and the Personal Information Protection Commission held on the 14th. Photo by Kim Hyunmin

He also criticized the win-win cooperation proposal announced by Baemin last year, calling it a 'trick.' At the time, Baemin claimed it would lower commission rates to between 2.0% and 7.8% based on sales volume, but just before the announcement, it had raised the commission from 6.8% to 9.8%, only to announce a reduction afterward.

There were further criticisms about the lack of genuine commitment to win-win cooperation. It was revealed that all three major delivery platforms-Baemin, Coupang Eats, and Yogiyo-refused to undergo the win-win performance evaluation by the Committee for Shared Growth. When Park Hyungsoo, a lawmaker from the People Power Party, stated, "If you are sincere about pursuing shared growth, you should not refuse the evaluation," Kim Beomseok, CEO of Woowa Brothers, responded, "I will check on this separately."

The 'Single Bowl Delivery' service, introduced for the first time this year, also became a point of controversy. Kim Donga, a lawmaker from the Democratic Party, claimed, "Baemin sales representatives are inflating the prices of certain restaurants and coercing them to participate in the Single Bowl Delivery service." In response, CEO Kim Beomseok said, "If such incidents occur, we will correct them."

During the Political Affairs Committee audit held on the same day, the scrutiny of delivery platforms continued. Both Baemin and Coupang Eats are facing sanctions from the Fair Trade Commission for allegedly forcing partner restaurants to match food prices and benefits with those offered on competing apps, a practice known as the 'most-favored-nation' clause.

Kim Myungkyu, CEO of Coupang Eats, who attended as a witness for the Political Affairs Committee, responded to Democratic Party lawmaker Lee Kangil's comment that "demanding a higher discount rate from independent business owners than from franchises when operating a one-serving free delivery service is discriminatory," by stating, "We will verify this clearly and ensure it does not happen again."

Hansung Sook, Minister of SMEs and Startups, is taking an oath at the National Assembly on the 14th during the National Assembly inspection of the Ministry of SMEs and Startups held by the Industry, Trade, Energy, SMEs, and Startups Committee. Photo by Kim Hyunmin

There were also calls for a more active role from the Ministry of SMEs and Startups. Lawmaker Park Hyungsoo said, "It is necessary to establish commission standards that alleviate the burden on small business owners, as long as they do not infringe on corporate operations." In response, Minister Hansung Sook stated, "We are conducting a survey throughout October. There are many factors to consider, so it is difficult, but I will consult with many people."