"Delivery App Fees to Be Negotiated Directly" ... Small-Business Groups Push to Establish Mutual-Cooperation Consultative Body with Delivery Platforms

[Financial News] Small-business groups are preparing to negotiate directly with delivery-platform companies over intermediary commissions and delivery fees. Rather than relying on government sanctions or legislation by the National Assembly, they aim to resolve the issues directly through the Private Delivery Platform Mutual-Cooperation Consultative Body.
 The Korea Federation of Micro Enterprises (KFME), National Merchants Federation, Korea Foodservice Association, Korea Franchise Industry Association (KFA), and National Cafe Owners Cooperative announced the plan at a press conference held on the 17th at the Korea Federation of SMEs (KBIZ) in Yeouido, Seoul.
 Through the consultative body, the five organizations plan to discuss revamping commission structures, improving unreasonable terms and conditions, and launching mutual-cooperation campaigns with major delivery-platform companies. They called on the platforms to develop concrete cooperation measures, including cuts to intermediary commissions and delivery fees, and to participate in formal negotiations.
 In particular, they pointed out that discussions on commission cuts and practical relief for damages—demands that small-business owners have raised—are being conducted mainly through legal procedures following the Korea Fair Trade Commission's decision in June to reject a consent resolution related to delivery platforms.
 In a joint statement, the five organizations said, "What small-business owners on the ground urgently need now is not 'judicial punishment in the distant future,' but 'cost reductions starting tomorrow and tangible support measures.'" They added, "We will directly resolve issues related to delivery apps through equal cooperation and voluntary communication among private-sector stakeholders."
 They also asked the government and the National Assembly to provide administrative support and establish an institutional foundation so that agreements reached through private-sector consultations can take root quickly in the field.
 Ko Jang-su, chairman of the National Cafe Owners Cooperative, said, "Even when cafes sell a single drink or dessert, their profitability drops sharply when they have to pay platform commissions and delivery fees." He called for cuts to intermediary commissions and delivery fees, as well as an end to unfair practices such as self-preferencing, 'flag planting,' and forcing businesses to pay advertising fees.
 The five organizations plan to take further action, including legal measures, if efforts to devise mutual-cooperation measures prove fruitless.
[email protected] Lee Ju-mi Reporter