President Lee: Delivery Platform Competition Gone, Excessive Fees Must Be Controlled

President Lee Jae-myung has called for government intervention to control excessive fees in the delivery platform market, asserting that the sector has effectively become a monopoly. Speaking at a ministry work report session, President Lee stated that the lack of competition allows dominant platforms to dictate prices, which he deems contrary to market principles.

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The market has already lost competition, and the excessive fees resulting from monopoly should be controlled with appropriate authority.

He specifically referenced the acquisition of Baedal Minjok by Delivery Hero, a German company, and its subsequent integration with Uber, as an example of market consolidation leading to monopolistic practices. President Lee recalled his experience as Gyeonggi Province governor, where he attempted to introduce a public delivery app to stimulate competition and prevent private platforms from charging exorbitant fees. However, he noted that financial support for this public app significantly decreased after his term, leading to its near disappearance.

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It is problematic for a monopolistic platform to set prices directly. It goes against market principles.

While emphasizing the need for regulation, President Lee indicated that direct government operation of delivery platforms is not a practical solution. Instead, he proposed a model where the government provides support and oversight, allowing the private sector to maintain operational leadership. This approach aims to balance market competition with consumer protection, ensuring that excessive fees do not burden users and small businesses.

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We attempted to compete with the private sector to prevent private companies from acting freely, but after my term, financial support for the app was significantly reduced, and it seems to have virtually disappeared.