Youth Ladder Protection Youth Coalition warns government regulation of delivery commissions could pass costs on to consumers

[Financial News] A youth group voiced criticism of regulations on delivery-app commission caps and the government’s real estate policies.
The Youth Ladder Protection Youth Coalition issued a statement in front of the National Assembly in Yeouido, Seoul, on the 7th, saying, “With the government unable to rein in home prices, even the ladder to homeownership for young people has been weakened,” and adding, “Regulations on delivery-app commissions, too, must be preceded by adequate measures to ensure that costs are not passed on to consumers.”
The group first criticized the government’s real estate policies. It argued that policies focused on curbing demand, such as restrictions on loans and the expansion of regulated areas, are instead narrowing young people’s opportunities to buy homes, as housing prices in Seoul have continued to rise for an extended period. “Even if we save our salaries, it is hard to keep up with home prices, and with access to loans blocked, it has become even harder for young people to buy homes,” it said, stressing that expanding housing supply and introducing financial measures for young people were needed more than tighter regulations.
The group also identified the delivery-app commission cap as a problem. It said that while it understood the aim of reducing commission burdens on small businesses, it was also necessary to consider the possibility that a drop in platforms’ revenue could be passed on to consumers in other ways, such as through higher delivery fees.
The Youth Alliance argued, “If platforms make up for revenue lost through commissions by charging for delivery and other costs, that burden could ultimately come out of consumers’ pockets.”
The group also called for △ reconsidering legislation on a delivery-app commission cap and developing measures to prevent costs from being passed on to consumers; △ developing housing-supply and financial measures that move away from a real estate policy centered on regulation; and △ incorporating young people’s views into the policy-design process.
[email protected] Choi Seung-han Reporter