This article was displayed on the ChosunBiz RM Report site on July 6, 2025, at 6 p.m.
When Baedal Minjok (Baemin) proposed to discount fees if Kyochon Chicken withdrew from Coupang Eats, the Fair Trade Commission began investigating the matter. This is because Baemin, the top player in the market, might expand its market dominance in a new way.
The Fair Trade Commission believes that since Baemin is currently only in discussions with Kyochon Chicken, there are no legal issues. The possibility of Baedal Minjok's market share sharply increasing just because one chicken brand withdraws from Coupang Eats is not high. However, the Fair Trade Commission is concerned that the nature of the contract between 'Baedal Minjok and Kyochon Chicken' might spread to other franchises.
According to competition authorities on the 7th, the Fair Trade Commission is aware that Woowa Brothers, the operator of Baemin, is starting the Baemin Only service and is monitoring its market impact. If Woowa Brothers enters into agreements with several franchises for Baemin Only, other delivery application (app) operators may lose their strength, limiting market competition.
Baemin Only is a type of agreement where Woowa Brothers offers store owners a discount on brokerage fees in exchange for not entering Coupang Eats. Currently, the brokerage fee rate is between 2.0 and 7.8%, and the discount rate for Baemin Only store owners has not yet been determined.
What is unique about Baemin Only is that store owners can still be listed on other delivery apps like Yogiyo and Ddanggeuryeo, and they will receive a discount on brokerage fees as long as they withdraw from Coupang Eats. This is a strategy set up by Woowa Brothers to outpace the growing second-place operator, Coupang Eats.
Delivery apps rank operators by monthly active users (MAU). While the number of users for Baemin, ranked first, has decreased by nearly 1% (22.61 million to 22.4 million) this year, Coupang Eats has increased by more than 10% (10.02 million to 11.11 million).
Woowa Brothers is in discussions with KYOCHON F&B, which operates Kyochon Chicken, regarding the Baemin Only service. The industry anticipates that such agreements will not stop at 'Woowa Brothers and Kyochon Chicken'. This implies that Woowa Brothers could expand its agreements to other chicken franchises like bhc and BBQ, or even pizza, to increase its market share. If multiple companies choose to leave Coupang Eats for lower fees, Woowa Brothers' market power is bound to grow.
The issue at hand is the 'exclusive conditional transaction.' According to the Fair Trade Act, a dominant market player must not engage in acts intended to unfairly exclude competing businesses.
A Fair Trade Commission official noted, "We will determine the illegality based on the market blockade effect or market exit concerns that prevent competitors (Coupang Eats) from obtaining counterparts (franchise store owners) due to exclusive conditional transaction actions," adding, "We are monitoring how economic effects could manifest if the (Baemin Only agreements) spread."
Just because Kyochon Chicken is only available for order on Baemin doesn't mean that Coupang Eats has to close its doors. Additionally, Coupang Eats could also introduce a similar service and use fee reductions as an incentive to allow certain franchises to be ordered only through its app. However, if Woowa Brothers aggressively increases the number of companies entering into Baemin Only agreements, it could limit competition and potentially violate the Fair Trade Act.
This is not the first time that Woowa Brothers has faced controversy under the Fair Trade Act. Last year, Woowa Brothers was investigated by the Fair Trade Commission for forcing store owners to sell food at the same price on other delivery apps as on Baemin. The request for the best treatment was made, and Woowa Brothers proposed a win-win plan to stop the demands for the best treatment that had become an issue along with Coupang Eats.
A Woowa Brothers official stated, "Currently, the Baemin Only agreements are not in finalized status but are in progress," explaining, "This is cooperation aimed at providing benefits to consumers and assisting Kyochon Chicken store owners."