Due to the aftermath of the emergency martial law on Dec. 3, the momentum for the final cooperation plan issued by the delivery app cooperation committee last year has vanished as the impeachment political landscape emerges. There are concerns that four months of efforts may go to waste. In light of this situation, the Fair Trade Commission (hereafter referred to as FTC) has stated that it will thoroughly inspect compliance with the final cooperation plan for delivery apps scheduled for implementation at the beginning of the year.
Delivery platform companies also seem to be ramping up efforts to regain momentum. By February, they plan to fully implement the cooperation plan for delivery apps, which includes differentiated commissions. Baedal Minjok (hereafter referred to as Baemin), the leading player in the delivery market, has begun internal system adjustments under the new leadership of Bum Seok Austin Kim. Coupang Eats is also preparing to implement the cooperation plan.
According to related industry sources on the 10th, Woowa Brothers are developing internal systems for the full implementation of the cooperation plan next month. This is necessary for the overall computational work to apply differentiated commissions. Differentiated commissions are designed to set different commission rates based on the revenue of the partnered businesses.
A representative of Woowa Brothers noted, 'This is not an independent implementation, but we need to coordinate with the FTC, Coupang Eats, and other government and stakeholders to determine the specific details and timing.' However, they added, 'If the announcement is delayed too much, we will inevitably lose momentum.'
Baemin is reported to have begun system adjustments following the appointment of Bum Seok Austin Kim as its new representative. Now that it has moved away from the interim leadership of Pieter-Jan Vandepitte, it can secure sustainable momentum for the cooperation plan. On the 8th, Kim stated, 'We will implement the cooperation plan for delivery apps next month.' To this end, they plan to announce the timing of the cooperation plan's implementation, standards for calculating intermediary fees, and ways for small business owners using Baemin to benefit from the cooperation plan within January, aiming for full implementation in February.
Earlier, the delivery app cooperation committee agreed to apply a differential rate for the current 9.8% delivery app intermediary fee, setting it between 2% and 7.8% based on transaction volume. In exchange, they agreed to increase delivery fees, currently between 1,900 won and 2,900 won, to a maximum of 3,300 won. The tentative implementation timeline for this cooperation plan had been agreed to be early this year.
Coupang Eats is also in the midst of work to implement the cooperation plan. The specific implementation date is said to be coordinated with Baemin. This is separate from the preparations for a social dialogue body that the Democratic Party of Korea’s Euljiro Committee, a major opposition party, plans to launch this month in agreement with Coupang Eats.
Coupang Eats and the Euljiro Committee plan to discuss the delivery fee structure through this body. A representative of the Euljiro Committee said, 'Although the political instability and tragic aviation disaster are occurring simultaneously, we cannot abandon people’s livelihoods, so we are working collaboratively behind the scenes.' It is reported that the Euljiro Committee is also seeking collaboration with Baemin following Coupang Eats.
The FTC has expressed its intention to revive the momentum for the final cooperation plan for delivery apps. Han Gi-jung, a commissioner of the FTC, stated in a New Year’s address on the 2nd, 'We will actively participate in legislative discussions in the National Assembly to swiftly curb anti-competitive behaviors by large monopoly platforms, while also strengthening monitoring of unfair practices by platform corporations deeply embedded in the daily lives of the public.'
An industry representative noted, 'Due to the political instability, the FTC will also begin to move vigorously to regain momentum.' They added, 'If the cooperation plan is implemented in February and the political situation stabilizes, the speed at which the cooperation plan takes root will accelerate.'