Nearly half of South Korean restaurant owners have raised their menu prices to offset mounting delivery app commission fees. (Image courtesy of Yonhap)
SEOUL, Sept. 19 (Korea Bizwire) — South Korean civic groups have accused two leading food delivery platforms of unfair and misleading practices tied to their popular “one-person meal” promotions, filing complaints with the Fair Trade Commission (FTC).
On Thursday, People’s Solidarity for Participatory Democracy, Lawyers for a Democratic Society (Minbyun), and the Korea Consumer Federation said they would report Baedal Minjok (Baemin) and Coupang Eats for violations of the Fair Labeling and Advertising Act and the Fair Trade Act.
The allegations center on promotions offering free delivery for single-meal orders, which have surged in demand amid the rise of single-person households. To be featured prominently on the apps’ “one-bowl” or “single-serving” pages, restaurants must provide at least a 20 percent discount with no minimum order price.
Delivery riders(CG) (Image courtesy of Yonhap)
Civic groups claim that when small restaurant owners protested the steep discounts as unprofitable, the platforms suggested they raise menu prices first and then apply the discount — for example, marking up a 12,000 won dish to 15,000 won before “discounting” it back to 12,000 won.
They argue this amounts to deceptive advertising that misleads consumers and pressures small businesses to participate in unfavorable schemes.
The groups also alleged discriminatory practices. Baemin reportedly allowed major franchise brands into the promotion even without meeting the discount conditions, while excluding some smaller eateries.
Coupang Eats, meanwhile, was accused of charging commission fees based on pre-discount prices, further squeezing margins for participating restaurants.
In response, Baemin denied engaging in systemic manipulation, saying the issue stemmed from isolated cases where customer service staff gave incorrect advice to merchants who inquired about price adjustments.
The FTC has yet to announce whether it will open a formal investigation.
Ashley Song (ashley@koreabizwire.com)
