The initiative, aimed at curbing excessive commission fees and preventing unfair trade practices, comes as small business owners face mounting pressure from their growing dependence on delivery platforms. (Image courtesy of Yonhap)
SEOUL, Feb. 25 (Korea Bizwire) — The Seoul Metropolitan Government has announced plans to become the first local government in South Korea to develop and publish a “coexistence index” that will evaluate delivery platforms on their commitment to fair business practices and cooperation with small businesses.
The initiative, aimed at curbing excessive commission fees and preventing unfair trade practices, comes as small business owners face mounting pressure from their growing dependence on delivery platforms.
According to city officials, the development of the index will begin in April through a six-month research project. The results, evaluating both public and major private delivery platforms, are expected to be released either by the end of 2025 or early 2026.
The assessment will examine various factors including the fairness of contract terms, hidden fees in platform advertising, and transparency in the disclosure of commission rates. Approximately five platforms with significant market share, including both public and private operators, will be subject to evaluation.
“As delivery orders increase, small business owners are becoming increasingly dependent on delivery platforms, while excessive platform fees are adding to their economic burden,” a city official said. “We’ve observed that fee increase strategies are evolving in ways that disadvantage small business owners, such as transferring consumer delivery fees to registered businesses.”
The city aims to create a fair industry ecosystem by raising awareness through the development and evaluation of this coexistence index. In addition to the index, Seoul plans to develop and distribute guidelines for fair trade practices in the delivery platform industry.
The initiative includes monitoring compliance with these guidelines and considering legislative improvements based on the platforms’ self-regulatory performance. The city is also planning to pursue cooperation agreements with delivery platform companies next year.
“This is the first attempt by a local government to develop such an index,” said a city official. “We hope to encourage voluntary participation and cooperation from companies in adhering to fair trade guidelines and improving their coexistence index scores.”
Seoul is also considering organizing a forum that would bring together government officials, platform industry experts, academics, and business owners to examine industry conditions and discuss potential improvements.
Ashley Song (ashley@koreabizwire.com)
