Baemin proposes lower commission rates for struggling restaurants

Baedal Minjok CI

Baedal Minjok (Baemin), South Korea’s leading food delivery app, has proposed a plan to reduce commission fees for struggling businesses following mounting criticism over excessive fees. According to industry sources on Sunday, Baemin recently submitted a proposal to the government’s win-win committee for delivery platforms and restaurants, outlining a tiered commission rate based on revenue.

Currently, Baemin charges a 9.8 percent commission fee on registered restaurants.

However, under the new proposal, businesses with lower sales would pay reduced fees, with some rates potentially falling as low as the 2 percent range, according to industry insiders.

The government has indicated that it is open to legislative action to further reduce the financial burden on businesses, depending on the outcome of ongoing discussions.

“We anticipate detailed discussions on the tiers and rates at the next committee meeting, which could take place as early as Tuesday,” said a Baemin official. “However, it is difficult to disclose specific figures, as the proposal will need to be aligned with other platforms like Coupang Eats and Yogiyo.”

The proposal is expected to be a key topic in the upcoming sixth meeting of the win-win committee, which was established in July under government guidance.

Other platforms like Coupang Eats and Yogiyo are expected to follow suit and offer similar proposals.

However, it remains uncertain whether the final coexistence plan will take the shape currently being discussed.

Critics point out that while the tiered structure lowers fees for smaller businesses, the base commission of 9.8 percent for Baemin and Coupang Eats and 9.7 percent for Yogiyo remains unchanged for others. Additional costs such as rider delivery fees and advertising expenses also pose a burden.

The Fair Trade Commission, the main regulatory body overseeing the process, has stated that it is monitoring the committee’s discussions.

FTC Chairman Han Ki-jeong commented in a televised interview, “It is preferable for stakeholders to come to a reasonable solution through coexistence, rather than through legislative action.”

Han also hinted that the government could intervene if no substantial agreement is reached by the end of the month.