At the National Assembly audit of the Ministry of SMEs and Startups (MSS), delivery application (app) fees and discount expense issues resurfaced as hot topics. Lawmakers from both parties urged the MSS to respond proactively, saying delivery apps are abusing their market position.
In the comprehensive National Assembly audit of the Ministry of SMEs and Startups (MSS) by the Trade. Industry Energy. SMEs. and Startups Committee on the morning of the 29th, Park Hyeong-su of the People Power Party said, "The No. 1 sector in online shopping transaction amount is food delivery, and within that, Baemin holds a market share of more than 50%," adding, "But Baemin is only running a business that squeezes small merchants dry."
Park also brought up a promotion Baemin is running. He pointed out that businesses must provide, at their own expense, discounts of at least 3,000 won and 15% or more to be featured at the top in Baemin's event. He said, "The expense is borne by the participating businesses while the platform takes the profit," adding, "It says first-come, first-served 90% off coupons, but in reality most coupons are only around 5%. It is a practice that deceives consumers."
He went on, "The issue of false discounts was pointed out during the National Assembly audit, and the same thing happened the next day," adding, "This shows there is no will for co-prosperity at all." He also said, "Investigate whether Baemin's use of market dominance to force participating businesses into discount events violates the Fair Trade Act," adding, "If necessary, immediately request cooperation from the Fair Trade Commission."
Minister Han Seong-sook of the Ministry of SMEs and Startups (MSS) said, "My understanding is that People's Solidarity for Participatory Democracy (PSPD) has already reported the matter to the Fair Trade Commission," adding, "The MSS is also looking into the relevant details and will devise effective measures."
Heo Jong-sik of the Democratic Party of Korea also said, "We have pointed out the delivery app problem countless times, but they pretend not to hear," adding, "If the MSS stays put, delivery apps will laugh and small merchants will cry." He also said, "Fair competition is important, but in reality it is 'gangster competition,'" adding, "The government is too soft. Get tougher."
Heo also continued with a claim to the effect that delivery fees widen the gap in food prices. He presented a case in which food sold for 34,000 won at a store was sold for 42,000 won and 39,000 won on Baemin and Coupang Eats, respectively. He said, "The reason for the MSS's existence is to stand with small merchants," emphasizing, "It must not stand with delivery apps."
Minister Han said, "After entering public office, I have found there are many budgetary and institutional constraints, but we will respond proactively to problems in emerging industries," adding, "On delivery app issues, we will cooperate with the Fair Trade Commission and move to coordinate policies for small merchants."