Feb 18 • 06:14 UTC 🇰🇷 Korea Hankyoreh (KR)

Delivery App Fees Favoring Small Businesses Like Credit Cards... Will the 'Food Delivery Act' Gain Traction?

The article discusses the burden of delivery app fees on small food businesses in South Korea and the potential legislative measures to alleviate this financial strain.

The article sheds light on the significant financial burdens faced by small business owners operating delivery-only restaurants in South Korea due to high commission fees charged by popular delivery apps. One business owner revealed that after selling a meal for 20,000 won, he received only 8,166 won after deducting various fees for commissions, delivery, and marketing. As a result, he has urged the Fair Trade Commission (FTC) to implement a system to lower these delivery app fees, highlighting the struggles faced by many similar entrepreneurs who depend heavily on these platforms for their income.

In response to escalating concerns from small businesses and civil society organizations regarding excessive fees, the Fair Trade Commission is reportedly considering measures to reduce the commission burden placed on delivery app retailers. Legislative discussions are also taking place in the National Assembly, where there is growing support for applying preferential commission rates for small businesses, similar to those already utilized for credit card transaction fees. This approach aims to alleviate the fee pressures experienced by small operators who are becoming increasingly reliant on delivery app services.

The article also references legislative efforts, such as the 'Food Delivery Act', proposed by Democratic Party lawmaker Kim Nam-kun, which seeks to impose limits on the commission fees charged by delivery platforms relative to order amounts. While there are concerns about directly regulating prices potentially disrupting market order, a tiered preferential fee structure is viewed as a more acceptable compromise. The overarching goal of these discussions is to create a more sustainable and equitable environment for small-scale food delivery businesses that are vital to the local economy.

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