Restaurant Owners Face Higher Costs After Free Delivery... “Regulate Total Costs, Not Just Commissions”

[Financial News] As concerns have emerged that restaurant owners are actually facing higher costs following delivery apps’ competition over free delivery, calls are growing to cap all costs, including delivery fees, rather than brokerage commissions alone. There were also calls to improve the practice of platforms unilaterally changing transaction terms that directly affect merchants’ sales. The platform industry, however, urged caution in introducing such measures, saying it is difficult to attribute small-business owners’ financial difficulties solely to the costs of using delivery apps.
At a forum held at the National Assembly on the 11th to discuss cases of abuse by delivery apps and ways to introduce a bill capping delivery-app commissions, Seo Chi-won, an attorney with the Livelihood Economy Committee of Lawyers for a Democratic Society (Minbyun), said, “It is only natural to say that the standards for calculating delivery fees must be transparent.” He added, “The system should make clear that delivery is not actually free, even if it is presented as free delivery.”
The forum also heard claims that restaurant owners’ cost burden had increased rather than decreased since free delivery was introduced. According to an analysis by Gongpeulhyeop, based on a single 10,000-won order, the cost borne by the owner rose by 915 won, from 6,028 won before free delivery was introduced to 6,943 won afterward. That amounts to 69.4% of the order value, leaving the owner with only 3,057 won after selling 10,000 won worth of goods.
As a result, calls emerged for a cap covering not only brokerage commissions but all costs incurred when using platforms, including delivery fees. Attorney Seo said, “Many people in the field believe that continuous business operations are possible if total transaction costs are around 15% of sales.” He added, “A framework for a cap should be established first, and the specific rate should then be adjusted during implementation.”
Separate from the issue of commission burdens, the structure that allows platforms to unilaterally change transaction terms directly affecting merchants’ sales and costs has also emerged as a key issue. Examples include the criteria for charging commissions, the distance over which stores are displayed, delivery areas, settlement of sales proceeds and advertising-fee refunds. Some platforms have also reportedly treated merchants as having agreed to changed terms if they do not raise an objection within a certain period after the terms are changed.
Kim Eun-jung, co-secretary general of the People's Solidarity for Participatory Democracy (PSPD), said, “As delivery apps have effectively become the foundation of business operations, the power to change transaction terms should not be left solely to companies’ internal operating decisions.” She added, “It must be examined strictly whether merchants can be deemed to have agreed to matters that directly affect their businesses—such as commission increases, worsened settlement terms and reduced exposure—simply because they did not express opposition.”
The platform industry, meanwhile, stressed that small-business owners’ cost burdens should not be viewed solely as a problem of delivery-app commissions. It argued that the overall cost structure must also be considered, given the large shares of food-material costs, labor costs and rent in restaurant operating expenses.
Kwon Se-hwa, director of policy at the Korea Internet Enterprises Association, said, “Caution is needed before attributing the difficulties faced by small-business owners solely to their use of delivery apps, including commissions.” He added, “Restaurants using delivery apps account for about 30% of all restaurants, while delivery sales account for only about 11%.”
According to Kwon, food-material costs, labor costs and rent account for about 85% of restaurant expenses, while other costs, including commissions, account for about 8%. He explained, “Delivery-app brokerage commissions are actually lower than the sales commission rates charged by other types of distributors, such as duty-free shops, department stores and large supermarkets.”
The government plans to reduce small-business owners’ cost burdens by promoting public delivery apps while continuing to improve the relevant system. Son Hu-geun, director of the Win-Win Cooperation Policy Division at the Ministry of SMEs and Startups, said, “Promoting public delivery apps may not be a fundamental solution to the reported cases of harm, but we will continue efforts to improve the system in order to expand win-win cooperation in the delivery-app sector and ease the burden on small-business owners.”
Meanwhile, related disputes are also rising rapidly as the use of online platforms becomes part of everyday life. According to the Korea Fair Trade Mediation Agency, the number of applications for dispute mediation involving online platforms rose from 111 in 2022 to 229 in 2023, 333 in 2024 and 440 last year. The figure has nearly quadrupled in three years.


[email protected] Lee Dong-hyuk Reporter