
Lee Administration Pushes Platform Fee Limits to Support Small Restaurants (Image supported by ChatGPT)
SEOUL, June 11 (Korea Bizwire) – South Korea’s major food delivery platforms are under renewed pressure as the Lee Jae-myung administration accelerates discussions on implementing a cap on delivery-related fees — a key campaign pledge aimed at promoting fairer economic practices.
At the center of the debate is a proposal from Baemin (operated by Woowa Brothers), the country’s largest delivery app. During a recent meeting led by the Democratic Party’s pro-labor “Euljiro Committee,” Baemin suggested limiting total transaction fees — including platform commissions, payment processing, and delivery charges — to 35% of the order value for orders under 15,000 won (about $11).
While Baemin emphasized that the proposal stemmed from earlier consultations with small restaurant owners rather than government pressure, merchant groups remain unconvinced. The Korea Alliance for Fair Platforms, representing small business owners, argues that a 35% cap does little to ease their financial burden, with some vendors currently paying 30–40% in combined fees on small orders.
“For a 10,000-won order, nearly 4,000 won goes to delivery fees and commissions,” said a representative from the group. “Baemin’s proposal seems designed to preempt potential fines from an ongoing antitrust probe by the Fair Trade Commission.”
Both Baemin and Coupang Eats are currently under investigation for alleged abuse of market dominance and have applied for a consent decree process, which allows companies to offer corrective measures without an admission of guilt in exchange for a quicker resolution.
Coupang Eats, the second-largest player in the industry, has yet to issue a public position or alternative proposal. Meanwhile, merchant groups have called for a stricter ceiling: a 15% cap on total fees across the board, and a 25% cap for small orders under 15,000 won. However, this would require overhauling the current delivery fee structure, which already surpasses 15% of total order value for most vendors.
Some industry officials caution against rushing to legislate a cap, warning it could disrupt market economics. “We believe a price ceiling goes against the principles of a free market,” said one delivery app executive. “The last industry consultative body on this issue took more than four months of negotiation. This one will likely need similar time and effort.”
Tensions are also rising within the broader stakeholder dialogue. While merchant associations demand lower overall fees, rider groups — also represented in the talks — are pushing for higher delivery payments, which are bundled into the total fee.
As policy discussions gather pace under the new administration, South Korea’s booming delivery industry finds itself at a critical juncture — caught between political pressure, economic realities, and the competing needs of its fragmented user base.
M. H. Lee (mhlee@koreabizwire.com)