Delivery App Fee Relief Talks "Halted"… Ongoing Disputes Among Merchant Groups

Second Meeting of Social Dialogue Body Canceled
Disagreements Remain Over Extent of Fee Reductions
Consensus Difficult Due to Divergent Views Among Business Groups

Social dialogue aimed at easing the commission burden of delivery applications (apps) has been suspended. This is due to significant differences of opinion among organizations representing stores using delivery platforms regarding the coexistence proposal put forth by the delivery platform industry at the first meeting. Another reason is that the platform side was reluctant to present a more advanced proposal. With consensus becoming virtually impossible, the future schedule has also become uncertain.

According to political circles and related industries on April 27, the Social Dialogue Committee on Delivery Apps, established by the Democratic Party of Korea's "Euljiro Committee for Livelihood Protection," canceled its second meeting, which was scheduled for the same day. No further dates have been set. The social dialogue committee on delivery apps, which officially launched and began its activities on April 10, is now at risk of collapse without even holding a second meeting. This crisis was triggered by clear differences in position among participating groups regarding delivery commission proposals discussed at the first meeting.

The current commission structure for Baedal Minjok and Coupang Eats was created through a 2024 coexistence council between delivery platforms and store operators. According to this structure, intermediary commissions range from 2.0% to 7.8% depending on the transaction amount, and the delivery fee is set at 1,900 to 3,400 won on a tiered basis. At the first meeting, the platforms proposed reducing the delivery radius in exchange for setting the intermediary commission at around 5%, and also lowering the store-borne delivery fee to the 2,000-won range. Additionally, it was reported that they suggested expanding the lower-commission bracket of 2.0% from 20% to 30% of transactions, while applying a 7.8% commission to the remaining 70%.

In response, the Euljiro Committee demanded an overall reduction in commissions to prevent any increase in the burden for some store operators, but the platforms reportedly maintained that further reductions would be difficult. A more significant issue is the divergence of opinions among the organizations representing store operators. Most small business organizations believe that, given the current difficult reality, swift implementation of the coexistence proposal is important. They argue that drafting an agreement and applying it, then gradually improving it, is more helpful to small businesses facing crisis.

Meanwhile, some hardline groups representing store operators have reportedly refused to compromise on their stance that total commissions—including intermediary commissions, delivery fees, payment processing fees, and VAT—must not exceed 15%. These differences arise from the varying characteristics of the store operators represented by each group. Organizations such as the Korea Federation of Micro Enterprises, which encompasses small-scale business owners, believe that expanding the lower-commission bracket would provide meaningful support. In contrast, groups composed mainly of larger stores argue that they would not benefit as much, and therefore remain opposed. Additionally, associations such as the Association of Store Owners for a Fair Platform, which represent businesses with a high proportion of delivery sales, are voicing stronger demands for commission reductions.

The industry is concerned that if a coexistence proposal cannot be reached, legislative efforts to cap commissions may gain momentum. Since last year, several bills introducing a delivery commission cap have been proposed in the National Assembly, mostly led by the Democratic Party of Korea.

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