This undated file photo shows scooters parked at a center for the food delivery platform Baemin. (Image courtesy of Yonhap)
SEOUL, June 19 (Korea Bizwire) — On a weekday afternoon in Seoul, a single-person household places a modest ₩9,000 food order through Baemin. It’s a small indulgence—but soon, it will come with even smaller strings attached.
In a move that could reshape the economics of Korea’s food delivery market, Woowa Brothers Corp., the operator behind South Korea’s dominant delivery app Baedal Minjok (Baemin), announced Thursday it will waive brokerage fees for all orders valued at ₩10,000 (US$7.26) or less.
The decision comes as part of a sweeping ₩300 billion social inclusion initiative aimed at easing financial pressures on small business owners, particularly those dependent on volume-driven delivery sales.
This policy shift—developed in coordination with local trade groups such as the Korea Franchise Union and mediated by the ruling Democratic Party—marks the first major concession from a platform company widely seen as the kingmaker in Korea’s hyper-competitive food delivery ecosystem.
According to the agreement, not only will Baemin drop commissions on small-value orders, it will also offer support for delivery fees and introduce tiered support for orders between ₩10,000 and ₩15,000, though specifics are yet to be announced.
A delivery rider picks up food at a restaurant in Seoul. Despite a downturn in the dining-out sector, the food delivery market continues to grow, driven by free delivery promotions. According to Mobile Index data from IGAWorks, as of December 2024, the combined monthly active users (MAU) of the top three delivery apps—Baedal Minjok, Coupang Eats, and Yogiyo—reached 37.53 million, marking a 9% increase from the previous year.
A Shift for the Smallest Orders—and the Smallest Operators
At the core of the policy is a recognition of South Korea’s changing social fabric. With single-person households now accounting for over one-third of the population, small orders have become the norm—yet they have also posed a pricing dilemma for both consumers and merchants.
“This interim agreement will ease the burden on participating businesses while creating new growth opportunities,” said Kim Bum-seok, CEO of Woowa Brothers. “As single-person households increase, we believe that supporting small orders will benefit consumers while helping business owners by boosting order volume and reducing costs.”
For mom-and-pop restaurants and small franchisees, who are often hit hardest by platform commissions, the program offers rare relief. Baemin’s fees—while competitive—have been a flashpoint in broader debates about platform dominance and the uneven digital economy.
A delivery rider picks up food at a restaurant in Seoul. (Yonhap)
₩300 Billion Commitment Over Three Years
Woowa Brothers has pledged ₩300 billion (approximately US$217 million) over the next three years to fund the initiative. This sizable investment signals a strategic pivot not only toward corporate social responsibility, but also market sustainability.
Observers say the move could force rivals like Yogiyo and Coupang Eats to follow suit. Baemin currently holds around 60% of the domestic delivery app market, with GS Retail’s Yogiyo and Coupang Eats trailing behind.
Whether Baemin’s fee-free gesture proves to be a short-term promotional push or a long-term redefinition of market norms remains to be seen. But for now, one thing is clear: in the age of single-meal dining and tightening margins, a small order may no longer come at a big cost—and that could make a big difference.
Ashley Song (ashley@koreabizwire.com)
