Sejong City to Operate Public-Private Partnership Delivery App with Commission Below 2% Within the Year

[Asia Economy (Sejong) Reporter Jeong Il-woong] Sejong City is launching a public-private partnership delivery app operation. The public-private app aims to reduce the commission burden on small business owners by utilizing apps developed in the private market without separately developing a public delivery app.

According to the city on the 19th, currently used private delivery apps generally impose delivery brokerage fees ranging from 6% to 12%, increasing the management burden on small business owners.

However, the app operated through public-private cooperation is expected to reduce the commission burden on small business owners by lowering brokerage fees to below 2%.

In particular, the public-private partnership method has the advantage of not incurring financial burdens associated with developing a public delivery app and can directly apply private sector technology and experience, making it easier to secure expertise and competitiveness in management and operation.

For example, among the 715 public delivery apps developed nationwide last year, most were either discarded or evaluated for improvement due to financial burdens.

However, the city believes that utilizing apps through public-private cooperation will have high applicability as it can simultaneously bring market competitiveness and sustainability already secured by the private sector. Public-private partnership delivery apps are currently operating related services in Seoul, Chungbuk Province, and are being promoted in Gangwon, Daejeon, Cheonan, and other areas.

Above all, Sejong has established a strategy to enhance the external competitiveness of delivery app operators and improve convenience for consumers by integrating the local currency ‘Yeominjeon’ payment system into the public-private partnership delivery app.

Kim Hoe-san, head of the city’s Enterprise Support Division, said, “By introducing a public-private partnership delivery app, we will secure both technological capability and public nature, ensuring that small business owners and users can equally enjoy benefits.”

Meanwhile, the city is recruiting app operators (businesses) until the 26th of this month, aiming to officially launch the public-private partnership delivery app service in December.

Conditions for participation include being a sound company currently operating a delivery app system without issues in technology and customer response.

The selected operator will be responsible for app operation and recruiting and managing affiliated stores, providing delivery app services with a commission fee below 2%.

Additionally, the city plans to support the selected company by integrating the Yeominjeon payment method, as well as other promotions and app enrollment for Yeominjeon affiliated stores.

Businesses wishing to participate should refer to the announcement on the city hall website and submit the application form, business plan, and other required documents by visiting the city hall Enterprise Support Division by the 26th.

This content was produced with the assistance of AI translation services.