The Lee Jae-myung government seems to be intensifying its efforts to introduce the 'delivery app commission cap system,' a promise made during the presidential election. The Democratic Party of Korea is negotiating additional cooperative plans with delivery platform operators such as Baedal Minjok (hereafter referred to as Baemin) and Coupang Eats until July. With the likelihood of this failing becoming increasingly high, discussions on legislation for the commission cap system are reigniting. This is why there are possibilities for legislation as early as the second half of the year.
According to the political and retail sectors on the 11th, the likelihood of the delivery app commission cap system being introduced has increased since the launch of the Lee Jae-myung government. The delivery app commission cap system is one of President Lee Jae-myung's ten major campaign pledges.
According to the National Assembly's legislative information system, there are five bills related to the delivery app commission cap system. The representative bill is an amendment to the Fair Trade Act proposed by Democratic Party of Korea lawmaker Lee Gang-il, who serves as the Director General of the party's Euljiro Committee Delivery App Task Force. The core content is to introduce a cap on the commission rate for online platform operators as well as to establish fairness and transparency in the market by disclosing the standards for calculating the commission rate.
Currently, the Democratic Party of Korea's Euljiro Committee has proposed to conclude negotiations on cooperative plans with Baemin and Coupang Eats by the end of July. The Euljiro Committee has been continuing discussions on delivery commissions since launching a social dialogue body on delivery apps in February. Although a cooperative plan was derived from the delivery app cooperative body organized under the Fair Trade Commission at the end of last year, it has been criticized as 'half-hearted' due to protests and exits from some member businesses, leading to the need to create a separate cooperative plan.
However, it is known that there has not yet been significant progress regarding the delivery commission issue. This is largely due to the large gap between the commission rates claimed by delivery platform operators and the rates demanded by member business organizations and the Democratic Party of Korea. Additionally, the participation of delivery platform labor unions, such as riders, in the dialogue body has further complicated the interests.
A member of the Democratic Party of Korea's Euljiro Committee noted, "We do not intend to cease discussions just because no conclusion is reached by the end of July. We plan to derive a cooperative plan through possible social dialogue," adding, "If it is difficult to achieve transparent and normal structural improvements solely through agreements, we are also considering legislation."
In the political and business circles, there is a prevailing view that it will be difficult for the Euljiro Committee to derive a cooperative plan with Baemin and Coupang by the end of July. Rather, there is a high likelihood that discussions on legislation for the commission cap system, initially proposed by the Democratic Party of Korea after the failure of cooperative plan negotiations, will be reignited.
A member of the industry remarked, "As this is clearly stated as a presidential pledge, there will be strong pressure initially from the administration," adding, "Since it is challenging to derive a cooperative plan that satisfies everyone, it seems best to effectively convey our position through legal discussions or public hearings aimed at legislation."
Lee Jeong-hee, a professor in the Department of Economics at Chung-Ang University, who served as chairperson of the delivery app cooperative body that derived the cooperative plan last year, stated, "The cooperative plan currently derived and in effect is not perfect. Rather, it is necessary to continue discussions to supplement the parts that need to be revised and improved," while noting, "If there is no progress compared to the last cooperative plan by the 'end of July' deadline, the government's legislative initiatives will gain momentum starting in the second half of the year."