Feb 24 β€’ 07:16 UTC πŸ‡°πŸ‡· Korea Hankyoreh (KR)

The 'Chogajip' Baemin-Only Contract: Citizen Groups File Complaint to the Fair Trade Commission over Distortion of Fair Competition

Citizen groups have reported the 'Baemin-Only' contract between Baedal Minjok and Chogajip Chicken to the Fair Trade Commission, claiming it severely undermines fair competition.

In a joint action, small business owners and civic organizations have filed a complaint with the Fair Trade Commission (FTC) against Baedal Minjok (Baemin) and Chogajip Chicken over their 'Baemin-only' contract. The groups, including the Fair Platform Association and other consumer rights organizations, conducted a press conference in Jongno, Seoul, expressing concerns that the agreement violates fair trade laws and franchise business laws. The contract stipulates that Chogajip Chicken will exclusively partner with Baemin for a temporary period in exchange for a reduced intermediary fee, raising alarms about its potential to limit market choice for both providers and consumers, thereby harming fair competition.

The implications of this contract are significant as local chicken franchise owners, who heavily depend on delivery sales, may find their operational freedom restricted. With Baemin effectively controlling access to the market for many restaurants, critics argue that this structure not only enhances dependency on a dominant delivery platform but also limits franchisees' ability to diversify their income. Fair Economy Committee member Park Hyun-yong cautioned that the contract could lead to the abuse of market dominance, infringing on the rights of franchise owners.

Furthermore, stakeholders, particularly franchise owners, have raised alarms about increasing dependency on delivery applications, exacerbated by the burdens of supply costs and delivery fees. Kim Jin-woo, Co-Chairman of the National Franchise Owners Council, expressed fears that if this contract sets a precedent, the reliance on delivery apps will grow, along with financial burdens. This growing sentiment reinforces calls from small business organizations for a repeal of the 'Baemin-only' policy and a reduction in intermediary fees, claiming that Baemin continues to favor large franchisers at the expense of small business survival.

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