'Baemin-Yogiyo' Corporate Merger Final Decision Imminent... Weight on 'Conditional Approval'

Fair Trade Commission, Recent Review Report Sent... Plenary Meeting Scheduled as Early as the 9th of Next Month

[Asia Economy Reporter Joo Sang-don] The Fair Trade Commission's final decision on the corporate merger between Woowa Brothers (Baedal Minjok) and Delivery Hero (Yogiyo) is expected soon.

According to related industries on the 10th, the Fair Trade Commission sent the review report to Kim & Chang Law Office, the legal representative for the corporate merger between Delivery Hero and Woowa Brothers (Baedal Minjok).

The corporate merger review report is known to contain content that 'conditionally approves' the merger of the two companies. The Fair Trade Commission considers that if the two companies merge, a clear monopoly player in the delivery app market will emerge, potentially restricting competition. However, it appears that the entry of new competitors such as Coupang Eats and Wemakeprice O has been taken into account. Competition with newly entering businesses is inevitable, making it difficult for Delivery Hero to raise prices such as commissions.

Last year, the Fair Trade Commission approved the merger of SK Broadband and T-Broad with the condition that 'cable TV subscription fees cannot be raised above the consumer price inflation rate for three years.' The industry believes that this time as well, the Fair Trade Commission has proposed conditions such as prohibiting commission fee increases and exclusive dealing.

The final conclusion is expected to be announced within the year. After receiving a statement from Delivery Hero, the Fair Trade Commission plans to hold a plenary meeting as early as the 9th of next month to finalize the discussion. The Fair Trade Commission received the corporate merger notification for the country's top two delivery apps, Baemin and Yogiyo, on December 30 last year. This means the approval decision will be made about one year after the notification was received.

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