A promotional banner for Baemin’s “Food Festa” discount event displayed at the bottom of the app (Image source: Baemin app capture).
SEOUL, Oct. 21 (Korea Bizwire) — South Korea’s leading food delivery platform Baemin is facing fresh criticism over allegations that it tacitly allowed restaurant owners to inflate menu prices before applying promotional discounts, effectively misleading consumers.
According to a report released Monday by the Fair Platform Business Owners Association (or For Fair Platform), a Baemin customer service agent failed to warn or stop a restaurant owner who asked if they could raise menu prices before joining the company’s ongoing “Food Festa” discount campaign.
Under the event, which runs through Oct. 31, participating restaurants are required to offer either a 15 percent discount or a minimum 3,000 won price cut. A leaked phone recording revealed the Baemin agent telling the owner there were “no specific rules” against such price adjustments.
Headquarters of Woowa Brothers, operator of Baemin, South Korea’s leading food delivery app. (Yonhap)
The revelation came just days after Baemin CEO Kim Beom-seok told lawmakers during a parliamentary audit that any similar incidents in the company’s “One Bowl Delivery” service—where vendors were asked to provide at least a 20 percent discount—were likely due to “individual employee mistakes.”
Advocacy group People’s Solidarity for Participatory Democracy accused Baemin of encouraging deceptive pricing tactics and filed a complaint with the Fair Trade Commission last month, citing violations of the Advertising Act.
In a statement, the group said, “Baemin’s CEO dismissed the issue as an isolated employee error, but the recordings reveal clear evidence of price manipulation and consumer deception.”
Baemin’s operator, Woowa Brothers, said the employee in question worked for an external contractor and was unaware of the company’s full policy. “We will strengthen oversight of partner firms to prevent similar incidents from recurring,” the company said.
Ashley Song (ashley@koreabizwire.com)
