
Delivery app commissions have emerged as the biggest financial burden for restaurant operators, leading to increased menu prices and passing costs on to consumers. (Yonhap)
SEOUL, July 21 (Korea Bizwire) — As small restaurant owners continue to struggle with rising operational costs and a sluggish economy, South Korea’s National Assembly is considering introducing a cap on delivery app fees — a move that could significantly reshape the country’s booming food delivery sector.
At the center of the debate is the “delivery app commission cap”, which would limit the total service charges — including platform commissions, payment processing fees, and delivery charges — to a fixed percentage of the order amount.
The proposal is being discussed as part of the Online Platform Act (OnPlat Act), a key legislative initiative backed by President Lee Jae-myung and the ruling Democratic Party. The National Assembly’s Political Affairs Committee is set to review the bill during a subcommittee meeting on July 22.
The initiative stems from growing complaints that food delivery platforms charge total commissions as high as 30–40%, leaving minimal margins for small business owners. Advocacy groups, such as the Korea Federation of Micro Enterprises, are demanding that the cap be set at around 15%, citing international precedents in cities like New York and San Francisco, where similar measures were implemented during the pandemic.

Rising commission fees and delivery charges on food delivery apps are directly contributing to higher dining costs, further increasing the financial burden on consumers. (Yonhap)
A political divide has emerged over how and where to legislate the fee cap. While the Korea Fair Trade Commission (KFTC) prefers to handle the issue under the Restaurant Industry Promotion Act — governed by the Ministry of Agriculture, Food and Rural Affairs — lawmakers argue that regulation of digital platforms should be addressed comprehensively under the Online Platform Fairness Act, a subset of the broader OnPlat framework.
Critics, including the agriculture ministry itself, say they lack the regulatory expertise to manage delivery apps, noting their current role is limited to providing subsidies for public delivery app discounts.
Meanwhile, industry players are sounding alarm bells. Operators like Baedal Minjok — South Korea’s leading delivery platform — warn that caps could hinder innovation and investment, and may ultimately lead to higher costs for consumers or delivery workers. In June, the company made a conciliatory move by waiving commission fees for orders under ₩10,000 and offering tiered delivery subsidies.
Despite the push for legislation, some stakeholders advocate for continued progress through voluntary negotiations between platforms and merchant associations. A recent agreement between delivery apps and food vendors has shown signs of progress, suggesting that a regulatory solution may not be the only path forward.
Still, with platform dominance and cost burdens becoming increasingly controversial, momentum is building for a legal framework to ensure fairer conditions for the thousands of small business owners driving Korea’s delivery economy.
Ashley Song (ashley@koreabizwire.com)