The ruling party, which is pushing to limit parcel couriers' predawn delivery work hours, held a "closed-door meeting" on the day the bill was introduced and gathered opinions while excluding the parcel industry, a key stakeholder. At the meeting, the ruling party effectively acknowledged the possibility of parcel rate hikes, according to accounts. Inside and outside the parcel industry, criticism is mounting that the party is pushing a matter with major public impact behind closed doors. Academia expects that if the ruling party's plan goes forward, parcel rates will rise by more than 1,000 won per package.
On the 11th, according to the National Assembly and the parcel industry, the Democratic Party of Korea Euljiro Committee held a "closed-door meeting on amendments to the parcel living logistics law" at the National Assembly on the 31st. That day was when the Euljiro Committee submitted to the National Assembly the "amendment to the living logistics law" (sponsored by Rep. Yeom Tae-young), centered on limiting predawn delivery hours and making parcel companies shoulder the full cost of social insurance premiums.
Yet the parcel industry and labor sector, which would be directly affected by the legal revision, were not invited to the closed-door meeting. Attendees included Euljiro Committee Chairperson Min Byung-deok; Democratic Party lawmakers Kim Nam-geun, Park Hong-bae, and Yeom Tae-young; the Korea Online Shopping Association; and the Green Consumer Network. Most parcel couriers oppose limits on predawn delivery work hours, citing income loss, and parcel companies also object to bearing the full cost of social insurance premiums.
"Parcel rate hikes," which are directly tied to people's daily lives, were also discussed at the closed-door meeting, according to reports. If delivery hours are limited, adding staff becomes inevitable, and with income compensation for couriers and prime contractors shouldering social insurance premiums, the burden will ultimately be passed on to consumers. At the meeting, an Euljiro Committee official was quoted as saying, "A study by The Korea Transport Institute (KOTI) will be released at the end of August," and "based on that, we will discuss how much to raise parcel rates."
If the amendment to the living logistics law passes, parcel rates could rise significantly. Earlier, the Korea Society of Consumer Studies released research finding that if predawn delivery work hours are limited from 60 hours a week to 48, there would be upward pressure of 1,061 won per package. That stems from additional monthly costs of 36.9 billion won for maintaining existing workers' income and paying for added staff.
That is six times the increase (about 170 won) agreed to in the 2021 social agreement. The industry expects that, in line with views from some in labor such as the Korean Confederation of Trade Unions (KCTU) and the Euljiro Committee, predawn delivery work hours will be limited to around 48 hours a week.
Each stakeholder has discussed predawn delivery hours and prime contractors bearing social insurance premiums at the "parcel social dialogue body," launched last September under the Euljiro Committee's lead, but talks have been suspended since April after failing to narrow differences. With social dialogue faltering, the industry says holding a closed-door meeting that excludes core stakeholders—the parcel companies and labor—and pushing legislation undermines the original purpose of social dialogue.
Negative views on parcel rate hikes were also raised at the closed-door meeting, according to reports. The point was that while discussing policies that would sharply increase parcel expense, prices should not be raised.
The Korea Online Shopping Association, representing shippers, was said to have conveyed the view that "instead of uniformly passing on additional expense to shippers or consumers, prices should be formed according to market logic through formats such as consultations between parcel companies and shippers."
Consumer groups also said, "We do not want consumption that uses life as 'collateral,'" while adding, "It is concerning if limiting predawn delivery proceeds in a way that passes expense on to consumers."
The Euljiro Committee was said to have stated at the closed-door meeting that it will resume social dialogue at the end of this month when research results from The Korea Transport Institute (KOTI) and others are released. At that time, it plans to revisit parcel rate hikes, limits on predawn delivery work hours, and prime contractors bearing social insurance premiums.