As restaurant closures surge, South Korea’s leading food delivery platform Baedal Minjok (Baemin) has sparked backlash from small business owners by deciding to impose commission fees on takeout orders as well. The photo shows a restaurant in Myeong-dong, Jung District, Seoul, that has shut down completely as of April 13. (Yonhap)
SEOUL, April 16 (Korea Bizwire) — South Korea’s top food delivery app Baemin is facing mounting criticism from small business owners after it began charging a 6.8% service fee on takeout orders this week—a move seen as a reversal of the hard-won compromise on delivery commissions reached in 2024.
On April 14, the first day the new takeout fee went into effect, online forums for self-employed restaurant owners were flooded with posts denouncing the change. Some merchants announced they were withdrawing from Baemin’s takeout service altogether. Critics described the fee as “cutting off the last remaining lifeline” for restaurants trying to reduce reliance on costlier delivery services.
Although the takeout commission policy itself is not new, Baemin had suspended the fee each year since introducing it as part of a voluntary regulatory framework overseen by South Korea’s Fair Trade Commission. This year, the company chose not to extend the exemption. Since the policy is voluntary, regulators cannot intervene directly.
The decision drew sharp contrast with rival Coupang Eats, which extended its takeout fee waiver for another year. Meanwhile, Naver—a dominant portal with growing ambitions in the food commerce space—is gaining traction among restaurant operators due to its significantly lower commission rates.
On Naver SmartPlace, small vendors earning under 300 million won annually pay as little as 0.8% in fees, compared to Baemin’s 6.8%.
Some restaurateurs are now shifting takeout operations to Naver, citing cost savings and additional benefits such as boosted search visibility and streamlined review collection.
This undated file photo shows scooters parked at a center for the food delivery platform Baemin. (Image courtesy of Yonhap)
Baemin, for its part, has launched a public relations campaign to justify the change, emphasizing that the takeout fee will help fund long-term investments in marketing and platform upgrades.
The company noted that under its Baemin1 Plus Pickup service, partner merchants receive benefits such as 50% paybacks on takeout discounts and offline promotional support. Baemin has also pledged to invest 30 billion won (approximately $22 million) annually to stimulate takeout demand through coupons and promotions.
To bolster its case, Baemin shared a success story from a fried chicken franchise that saw orders increase 165% and revenue rise 224% after joining its pickup service.
A Baemin spokesperson defended the fee, saying, “Years of waiving the pickup commission limited our ability to invest in technology and marketing. Reintroducing the fee will allow us to enhance the service for both merchants and consumers.”
Still, industry observers warn that the timing of the policy shift is precarious. With small businesses struggling under inflation and a snap presidential election looming in June, Baemin’s move risks deepening discontent. Some suggest the change may be driven by financial pressure on parent company Delivery Hero, which has faced mounting losses.
A delivery app industry insider noted, “Regulators are closely watching the platform sector, including Baemin. This fee could undermine last year’s fragile consensus on fair delivery commissions. Caution is warranted.”
Ashley Song (ashley@koreabizwire.com)
