Small Business Sector Denounces Delivery Apps' 'Deceptive Win-Win Plan' ... '1km Limit Deprives Us of Survival Rights'

The landscape of food delivery in South Korea is currently fraught with tension, as small business owners and self-employed individuals voice strong opposition to what they perceive as deceptive 'win-win' proposals from major delivery platforms like Baemin and Coupang Eats. The heart of the dispute lies in the newly introduced 'Light Plan,' which, while touting lower commission fees, imposes a severe restriction on delivery distances to just 1 kilometer.

For countless small business owners who have invested years in building their customer base within a broader delivery radius, this sudden limitation represents an existential threat. They argue that reducing the delivery area to a mere 1km will shrink their operational scope by as much as 16 times, drastically impacting revenue and their ability to sustain their businesses. This is particularly galling given that their marketing and advertising efforts have been predicated on the existing, wider delivery zones.

“

Business owners who have secured regular customers over the years based on the existing 4km operating range will see their operating area and sales drastically reduced to one-sixteenth if the delivery distance is suddenly limited to 1km.

Beyond the radius restriction, the revised fee structures themselves are causing concern. The platforms' move to consolidate fee tiers based on the top 70% of sales, rather than the previous four-tiered system, means that many businesses previously in lower fee brackets will now face increased commission rates if they do not opt for the restrictive 1km plan. Coupled with an increase in delivery fees, these changes collectively paint a picture of platforms prioritizing their own interests over the genuine welfare of the merchants who form the backbone of their services.

From the perspective of South Korean small business owners, this situation highlights a persistent imbalance of power between large digital platforms and independent merchants. The proposed 'solutions' are seen not as genuine attempts at cooperation, but as strategic maneuvers to consolidate market share and increase profitability at the expense of those least able to bear the burden. The calls for regulatory intervention, including the implementation of delivery fee caps, underscore a deep-seated frustration and a demand for fairer practices in the rapidly evolving digital economy.

“

If this negotiation falls through, the Fair Trade Commission must impose strict penalties on the unfair practices of delivery app companies, and the National Assembly and the government must immediately introduce the delivery app fee cap, which was set as a national task.