Baemin Joins Korea's First 'Delivery Service Mutual Aid Association'…Invests 4.7 Billion KRW in Capital

Delivery Industry Forms Union for 'Rider Safe Jobs'

The practical training site of 'Baemin Rider School,' a two-wheeled vehicle safety education facility located in Namyangju, Gyeonggi Province, operated by Elegant Youth.

[Asia Economy Reporter Kim Cheol-hyun] Baedal Minjok (Baemin) is joining the 'Delivery Service Mutual Aid Association' to reduce the insurance premium burden on delivery riders and improve job conditions.

Woowa Brothers Corp. (CEO Kim Byung-woo), which is responsible for Baemin's delivery service, announced on the 27th that it will participate as a member of the 'Delivery Service Mutual Aid Association' and invest 4.7 billion KRW in capital.

The Ministry of Land, Infrastructure and Transport (hereinafter referred to as MOLIT) and nine delivery industry companies have been promoting the Delivery Service Mutual Aid Association since February to alleviate the insurance premium burden for delivery workers and create a safe driving environment for two-wheeled vehicles. This association has a strong policy mutual aid character aimed at supplementing the policy blind spots for delivery riders. After about eight months of discussions on the association's operation plan, capital, and investment funds, MOLIT and the nine companies held the inaugural general meeting to announce the establishment of the mutual aid association with a total capital of 11 billion KRW.

With the launch of the mutual aid association, the safety and job stability of riders will be further strengthened. First, the burden of paid transportation insurance will be reduced. Paid transportation insurance is an important means to minimize criminal penalties and economic damages for delivery workers in case of accidents. However, for delivery two-wheelers, insurance premiums were very high, sometimes reaching several million KRW per year, resulting in a very low insurance subscription rate among delivery workers. Accordingly, the association plans to offer paid transportation mutual aid products to delivery workers at premiums at least 15% lower than existing insurance rates.

The delivery working environment for delivery workers is also expected to improve. The association is planning various policies to expand safety education and rider convenience. Baemin has applied insurance policies to protect riders' safety and rights even before joining the mutual aid association. After mandating industrial accident insurance and paid transportation insurance, it partnered with private insurers to launch hourly insurance. In May last year, Baemin independently established the 'Baemin Rider School,' a training facility for two-wheeler safety and delivery service practice, educating over 2,300 riders last year alone.

Kim Byung-woo, CEO of Woowa Brothers, said, "Improving and developing the job environment for delivery workers is essential for creating a healthy delivery industry ecosystem," adding, "We will actively participate in the Delivery Service Mutual Aid Association launched with the government to take the lead in managing the safety and protecting the rights of delivery workers."

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