SEOUL, July 23 (AJU PRESS) - Korea's largest food delivery app, Baedal Minjok (Baemin), is facing regulatory scrutiny and public criticism following its announcement to raise commission fees for restaurants.
The company, which controls over 60 percent of the market, plans to increase its commission rate from 6.8 percent to 9.8 percent starting next month. Baemin is operated by Woowa Brothers, which is owned by Germany’s Delivery Hero.
Civic groups are accusing Baemin of abusing its dominant market position.
"It appears Baemin has been accelerating the transition to its percentage-based fee model to maximize profits even before the fee increase," said a spokesperson for the People's Solidarity for Participatory Democracy (PSPD).
The PSPD was set to hold a press conference Tuesday requesting the Korea Fair Trade Commission (FTC) investigate the planned fee increase.
The competition watchdog launched a probe last week into delivery platforms, including Baemin, over allegedly unfair business practices. The inquiry is known to be unrelated to the rate hike.
Baemin said the fee increase is inevitable given that its rival Coupang Eats’ rates are 3 percent higher.
Meanwhile, the government plans to establish a cooperation council with delivery platforms and affiliated businesses to discuss ways to alleviate burdens on small business owners.
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