"In the delivery app market, a system for 'integrated burden rate disclosure' must be established to reveal not only simple brokerage fees but the total expense that listed businesses actually bear, including advertising costs and promotion cost-sharing."
The Korea Academic Society of Business Administration held a National Assembly policy forum at the National Assembly Library on the 16th under the theme "Sustainability of the delivery platform ecosystem—diagnosis and prescription."
The forum was co-hosted by Reps. Kim Won-i and Jeong Jin-uk of the Trade. Industry Energy. SMEs. and Startups Committee and the Korea Academic Society of Business Administration, with support from the Ministry of SMEs and Startups, the Korea Federation of Small and Medium Enterprises, the Small Enterprise & Market Service (SEMAS), and the Korea SMEs & Startups Institute (KOSI).
◇In delivery apps' winner-take-all structure, small merchants' profitability deteriorates
Korea's delivery platform market has grown over the past 10-plus years to an annual transaction value of about 28 trillion won, but concerns have also been raised about the deterioration of small merchants' profitability and market concentration due to deepening platform dependence. The forum diagnosed the current state of the delivery platform ecosystem and discussed sustainable development measures.
Jo Joo-hyeon, president of the Korea SMEs & Startups Institute (KOSI), said in congratulatory remarks that "the delivery platform ecosystem is at an important turning point," adding, "we must build a fair ecosystem where innovation in the delivery app market, as well as listed small merchants, delivery workers, and consumers, can grow together."
Jeon Seong-min, a professor in the Department of Business Administration at Gachon University who delivered the first presentation, said conflicts between delivery platforms and listed businesses are not unique to Korea but a global phenomenon. Jeon explained that in major countries such as the United States, Europe, and China, platform fees and market dominance remain contentious issues. In particular, the platform industry forms a "winner-take-all" structure in which a few corporations dominate the market based on network effects and data accumulation.
Jeon said, "The sustainability of the platform economy hinges on the success or failure of a new 'digital social contract' in which the value created by platforms is fairly distributed to workers, store owners, and consumers," emphasizing that "it is important to design policies that find a balance between efficiency and fairness." However, citing the example of China, Jeon warned that excessive regulation could cause a "chilling effect" that dampens investment and innovation.
◇"Integrated burden rate disclosure should enhance market transparency"
Park Kyung-min, president of the Korea Academic Society of Business Administration (professor at Yonsei University School of Business), who gave the second presentation, announced results from an analysis of 49 months (2021–2025) of actual transaction data from 13,098 restaurants in the Seoul metropolitan area. According to the study, while sales increased as reliance on delivery apps grew, operating margins fell, showing a "paradox of growth." Notably, small and mid-sized restaurants saw profitability deteriorate, while large restaurants benefited from economies of scale.
Park said, "The vast majority of restaurants are in a 'locked-in state' that relies on a particular platform for a significant portion of delivery sales," noting, "franchise outlets have their headquarters partially cushioning the burden, but independent small merchants inevitably feel the direct impact of rising platform expense."
Measures to improve the system for greater sustainability in the platform market were also proposed. Park argued, "We should regularly disclose an 'integrated burden rate' that sums up all expenses restaurants actually pay to platforms, including not only brokerage fees but also advertising costs, delivery fees, payment processing fees, and promotion cost-sharing." By transparently disclosing the actual total expense rather than simple fees, Park said, stakeholders can accurately assess the burden level on listed businesses and strengthen market oversight.
Park also proposed, "To invigorate competition among platforms, we should guarantee a 'right to transfer reputation assets' so that reputation data accumulated by restaurants, such as star ratings and reviews, can be used on other platforms." The idea is to ease lock-in to a particular platform, expand choices for small merchants, and spur service competition among platforms.
Park said, "To strengthen small merchants' bargaining power, we should consider introducing a 'collective bargaining safe harbor (two-track safe harbor)' under which collective negotiations over transaction terms such as fees or settlement conditions are exempt from the Fair Trade Act, while consumer price collusion remains strictly prohibited."
◇"Allow collective bargaining for SMEs and small merchants… bolster bargaining power with platforms"
In the general discussion that followed, participants agreed that the core of conflicts around delivery platforms lies not in the simple level of fees but in information and bargaining power asymmetries and a concentrated market structure. They emphasized that efforts should first focus on enhancing transparency in expense structures and establishing dispute resolution systems.
Lee Hye-won, associate research fellow at the Small Enterprise & Market Service (SEMAS), agreed on the need for integrated burden rate disclosure but said standardizing expense categories, interagency cooperation, and measures to support independent small merchants should come first.
Professor Lee Sang-yoon of Sungkonghoe University proposed introducing a "platform coexistence index" that comprehensively evaluates small merchants' profitability, rider treatment, consumer welfare, and contributions to local commercial districts. Lee Eun-cheong, director general of the Win-Win Cooperation Policy Bureau at the Ministry of SMEs and Startups (MSS), said, "Perceived win-win cooperation in delivery apps remains low," adding, "we will draw up measures within the year to invigorate public delivery apps and push to institutionalize win-win cooperation between platforms and listed businesses."
Cha Nam-su, head of policy development at the Korea Federation of Micro Enterprise (KFME), proposed first piloting the introduction of the right to organize and the right to collective bargaining for businesses listed on delivery platforms.
Sun Jung-gyu, director general of competition policy at the Korea Fair Trade Commission, said, "To strengthen the bargaining power of small and medium-sized enterprises and small merchants, we are reviewing a plan to exclude the application of cartel provisions under the Fair Trade Act to collective bargaining." Sun added, "We are working to apply this system to the delivery app platform market so that small and medium-sized enterprises and small merchants can jointly negotiate with platforms."