Stickers of Baedal Minjok and Coupang Eats are attached to a restaurant in Seoul /Courtesy of News1

Baedal Minjok will reduce the brokerage fee from 9.8% to between 2.0% and 7.8% for three years starting on Feb. 26.

Woowahan Brothers, the operator of Baedal Minjok, announced on the 22nd a plan to implement a mutually beneficial fee system.

Baedal Minjok plans to apply varying brokerage fees and delivery costs for merchants subscribed to the "Baemin 1 Plus" fee system based on their sales within the app, dividing them into four segments.

For the top 35% in sales, a fee of 7.8% (excluding VAT) will be applied; those between the top 35% and 80% will incur 6.8%, and those exceeding 80% up to 100% will face 2.0%. Delivery fees will range from 1,900 to 3,400 won.

For the bottom 50% in sales, only the reduction in the brokerage fee will apply without adjustments to delivery costs. Merchants in the bottom 65% segment will see their delivery operation expenses decrease regardless of order amounts, especially for those in the bottom 20%, who will receive brokerage fees equivalent to those of public delivery apps.

With this adjustment, merchants in the top 35% will see reduced costs only when order amounts exceed 25,000 won. For example, if a chicken store operator sells a chicken for 20,000 won, the combined burden of fees and delivery costs will increase compared to now, but if they sell two, the burden will decrease. Based on an average order amount of 25,000 won, merchants in the bottom 75% will see their brokerage fees and delivery costs reduce by approximately 550 to 1,950 won.

The segments for differentiated fees will be calculated based on the average daily delivery sales of merchants who used Baemin 1 Plus for more than one day in the prior three months. Those with zero operating days will be excluded, meaning merchants not operating delivery will not be included in the mutually beneficial fee system.

Baedal Minjok will calculate the segments every three months and plans to apply the fee structure starting one month (the system implementation period) after the end of the calculation period. New merchants will initially pay a brokerage fee of 7.8%.

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