[2021 National Audit] "Giant Platform Companies Must Withdraw from Local Market Entry"

B Mart Achieves 147.7 Billion KRW in Sales Within One Year of Launch, Faces Criticism for Dominating Local Markets

[Asia Economy Reporter Kim Cheol-hyun] There have been calls to withdraw the entry of giant platform companies into neighborhood commercial districts. On the 7th, during the 2021 Ministry of SMEs and Startups audit held at the National Assembly, Kim Seong-hwan, a member of the National Assembly's Industry, Resources, Trade, and Small and Medium Enterprises Committee (Seoul Nowon-byeong, Democratic Party), stated that giant platform companies are infiltrating various neighborhood commercial areas and urged the withdrawal of businesses such as Baedal Minjok's 'B Mart.'

According to Representative Kim, B Mart is a representative quick-commerce service business that directly owns logistics warehouses in urban areas and delivers food ingredients and daily necessities within 15 minutes to 1 hour, deeply penetrating the unique domain of small and medium merchants. Kim pointed out to Kim Beom-jun, CEO of Woowa Brothers, who appeared as a witness, that "Baedal Minjok is a giant company holding 66% of the domestic delivery app market share," and "B Mart, launched in the fourth quarter of 2019, achieved sales of 147.7 billion won (107 million euros) within one year, rapidly expanding its market. The sharp increase in B Mart's sales conversely indicates the scale of damage to small and medium merchants."

Representative Kim continued, "In July, 11 small and medium merchant associations and organizations formed an emergency countermeasure committee against market invasion, applying to designate food ingredient supply and warehouse-type mart businesses as industries suitable for small and medium enterprises and appealing for protection." He also stated, "The behavior of a referee playing the role of a player, ignoring fairness and coexistence and pursuing only profit, is an issue that cannot be tolerated. Immediate withdrawal of the B Mart business and active cooperation for coexistence with small and medium merchants are necessary."

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