[Inside Chodong] Productive Dialogue on Delivery Apps for Small Business Owners Is Essential

Chulhyun Kim, Deputy Director of Bio Small and Medium Business Venture Department

The "Social Dialogue Organization for Delivery Apps," led by the ruling party and now facing the risk of collapse, was structurally difficult for meaningful discussion from the very beginning. This is because there are clear differences in positions among the participating organizations representing small business owners and the self-employed. The participating organizations include the Korea Federation of Micro Enterprises, the Korea Franchisee Association, the National Association of Merchants, the Korea Foodservice Industry Association, the Korea Franchise Association, the Association of Owners for Fair Platforms, and the Korea Federation of Micro and Small Business Owners. While they may all appear to be "groups representing partner businesses," their interests differ. This is because each organization voices different opinions depending on the sales scale of its members or the share of delivery in their business operations. For example, organizations such as the Korea Federation of Micro Enterprises, which represent small business owners, believe that expanding the lower commission bracket with significant fee reductions will provide effective support to small businesses. However, organizations focused on larger partner businesses see little benefit in expanding the lower bracket. In addition, organizations such as the Association of Owners for Fair Platforms, whose members rely heavily on delivery, advocate more strongly for commission reductions than those consisting of businesses that also operate dine-in services.

As a result, conflicts arose from the outset. Before the first meeting, disagreements erupted, leading some organizations to withdraw. A unified proposal from the partner business groups was needed, but several organizations showed no willingness to compromise. Eventually, the second meeting scheduled for the 27th was canceled. Afterward, the groups continued to voice clearly differing opinions outside of official meetings. On the 28th of last month, three organizations—the Association of Owners for Fair Platforms, the Korea Franchisee Association, and the Korea Federation of Micro and Small Business Owners—held a protest in front of the headquarters of Woowa Brothers, demanding further improvements to the platform's win-win proposal. The next day, five other organizations—the Korea Federation of Micro Enterprises, the Korea Franchise Association, the Korea Foodservice Industry Association, the National Association of Merchants, and the National Cafe Owners Cooperative—gathered separately and adopted a joint statement agreeing in principle with the platform's proposed win-win plan and emphasizing the need to continue the social dialogue.

Summarizing the positions of both sides: the Association of Owners for Fair Platforms and its allies maintain a firm stance, refusing to accept the win-win proposal offered by the platform at the first meeting and demanding measures such as a cap on commission rates. In contrast, organizations like the Korea Federation of Micro Enterprises argue that, considering the immediate challenges faced by small business owners, the win-win proposal should be accepted for now and dialogue should continue. The platform's proposal includes reducing the commission rate for delivery to the 5% range by shortening the delivery radius and lowering the delivery fee burden on businesses to the 2,000 won range. It also includes expanding the lower bracket applying a 2.0% rate from the current 20% to 30%. Furthermore, it proposes emergency support measures and the establishment of a win-win fund for financial support.

This social dialogue organization was launched in response to the perception that the win-win plan, currently in effect and developed through the 2024 platform-partner business win-win council, is insufficient. In 2024, there were also differing opinions among the participating platforms and among the partner business organizations. Nevertheless, after 12 rounds of negotiations over four months, a dramatic agreement was reached, resulting in lower commissions for partner businesses, despite some remaining differences. Lee Junghui, a professor at Chung-Ang University who chaired the council, said, "Although some partner business groups opposed it, we decided to accept the final revised plan out of concern that the longer the delay, the greater the damage to small business owners." The risk of greater losses for small business owners increases the longer the process drags on, especially now, when the surge in packaging container prices caused by the Middle East war has delivered a direct blow. For now, it is imperative that dialogue resumes. The "political capacity" of the lawmakers who established the social dialogue organization is now more important than ever.

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