Public and Private Sectors Join Hands to Establish 'Two-Wheeled Vehicle Delivery Business Mutual Aid Association'

Government and 9 Delivery Agency Platform Companies to Sign Agreement on the 24th

[Asia Economy Reporter Jo Gang-wook] The establishment of a motorcycle delivery workers' mutual aid association to alleviate the excessive insurance premium burden for paid transportation is being promoted through a public-private partnership.

On the 24th, the Ministry of Land, Infrastructure and Transport announced that it signed an agreement for the 'Establishment of a Small Parcel Delivery Agency Mutual Aid Association' at the LW Convention Grand Ballroom with nine food delivery platform companies. The companies participating in the agreement are Woowa Brothers, Coupang Eats Service, Great Imagination, Logiol, Barogo, Mesh Korea, Spidercraft, Manna Corporation, and Superhero.

Paid transportation insurance is insurance that provides compensation in case of accidents during delivery work. However, the insurance premiums are expensive, resulting in low subscription rates. In fact, the average paid transportation insurance premium was 2.04 million KRW per year (as of the end of 2020), which is 11 times higher than household insurance premiums. Additionally, the number of paid transportation insurance subscriptions was estimated at 37,000 vehicles, with a subscription rate of only 19% (estimated 200,000 workers). Because of this, many workers subscribed to household insurance and were unable to receive compensation in case of accidents. Last year, with the enactment of the Living Logistics Service Industry Development Act, a legal basis was established for the industry to set up a mutual aid association.

According to this agreement, a public-private joint mutual aid association promotion council and a promotion task force secretariat will be formed. Through regular operations of each organization, if preparations for the establishment of the association are completed, an application for establishment approval is planned to be submitted within this year. The government has pledged to review the application immediately upon receipt.

Hwang Seong-gyu, Vice Minister of the Ministry of Land, Infrastructure and Transport, said, "I hope this will be an opportunity to create a safer working environment for workers and serve as a catalyst for coexistence and sustainable growth in the delivery industry."

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