[비즈한국] From Baedal Minjok (Baemin), Coupang Eats, and Yogiyo to Kakao035720 and Naver035420. Companies are closely monitoring the 'delivery app fee cap' system, which President Lee Jae-myung pledged during his presidential campaign. While domestic self-employed associations argue that fees should be capped at around 15%, companies are pushing back, calling it excessive. Although the government and the Democratic Party of Korea are gathering opinions to process the bill, complications are expected before its passage due to differing positions between government ministries regarding the method of legislation.
Fair Trade Commission: "Processing via Online Platform Act may cause trade issues"
The National Assembly's National Policy Committee will hold a subcommittee meeting on the 22nd to discuss plans to include the delivery app fee cap in the 'Online Platform Fairness Act (On-Pl Act).' The fee cap system is designed to prevent the total fees—including brokerage fees, payment processing fees, and delivery costs—from exceeding a certain percentage of the order amount. Self-employed associations are demanding a 15% cap, claiming that current fees reach 30–40%.
On the other hand, platform companies believe this level is excessive, but they are unable to voice their opposition publicly because it is a pledge President Lee Jae-myung has held since his presidential campaign.
However, the variable lies in the differing positions among government ministries. While the Democratic Party wants to process the On-Pl Act, the Fair Trade Commission (FTC) believes the fee cap should be included in the Food Service Industry Promotion Act. This is because online fees involve U.S. companies like Google, which could lead to complications in trade negotiations.
In fact, the Computer & Communications Industry Association (CCIA), which includes Google, Apple, and Amazon, stated in an opinion submitted to the Office of the United States Trade Representative (USTR) that "enforcement targeting only U.S. companies is discriminatory treatment," and 43 Republican members of the U.S. House of Representatives also sent a public letter to the Trump administration to express their concerns.
The FTC suggested the Food Service Industry Promotion Act as an alternative because there are cases of such legislation in countries like the U.S. and Canada. In particular, Canada's Ontario province enacted the 'Supporting Local Restaurants Act' in 2020, which temporarily capped delivery app fees solely for small restaurants affected by the indoor dining ban during COVID-19 distancing measures.
Ministry of Agriculture: "Platform regulation should be in the On-Pl Act"
However, the Ministry of Agriculture, Food and Rural Affairs maintains the position that "platform regulation should be included in the On-Pl Act, not the Food Service Act." It is reported that the Ministry of Agriculture stated its opposition, saying, "The nature of the Food Service Industry Promotion Act does not align with delivery app fee regulation and does not fit the relevant legal and administrative framework."
Within and outside the Democratic Party, there is also talk that it is inappropriate for the Ministry of Agriculture to oversee issues related to delivery app companies. Critics argue that the Ministry lacks the manpower and expertise to handle the task, which requires listening to the opinions of both the self-employed and platform companies and conducting fact-finding investigations. It is reported that some in the Democratic Party have suggested, "It would be better to regulate delivery app fees through the Small Business Protection Act, which is under the jurisdiction of the Ministry of SMEs and Startups."
With the gap between the positions of self-employed associations and companies being sharp, and government ministries reluctant to lead the legislation, there is speculation that the Democratic Party's plan to process it within this month may be delayed. Some point out that instead of rapid legislation, social dialogue between the delivery industry and store owners should be prioritized. In fact, Woowa Brothers, the operator of Baemin, has already put forward a mediation plan, such as exempting fees for orders under 10,000 won.
An industry official watching the On-Pl Act stated, "The 15% fee cap suggested by the self-employed associations is unrealistic. Applying this is essentially telling companies, 'Do not make a profit.' Shouldn't there be an attempt to create a forum for dialogue between companies and the self-employed to come up with the best solution first?"