Baemin to lower commission fees next month

A delivery rider carries a food order in front of a restaurant in Seoul, Jan. 7. Yonhap Measure follows agreement between gov't, platforms, restaurants By Ko Dong-hwan Official logo of Baedal Minjok Online food delivery platform operator Baedal Minjok, commonly known as Baemin, said on Wednesday that it would lower commission fees for restaurants using its platform next month to help ease their financial burden.

The decision, scheduled to take effect on Feb. 26, follows an agreement involving the government, major delivery platform operators — Baemin, Coupang Eats and Yogiyo — and an association of local restaurant owners registered with these platforms. Baemin's new system also comes amid a sharp decline in sales within the dine-in industry, driven by surging raw ingredient costs, rising market prices and a growing shift away from dining out.



The situation has been further exacerbated by political unrest stemming from President Yoon Suk Yeol's botched martial law imposition in December, which has deepened the nationwide slump in consumer spending. According to Baemin, the new commission rating system will reduce the rate from 9.8 percent to a range of 2 to 7.

8 percent. The system applies to business owners subscribed to Baemin 1 Plus, a flexible option the company offers to business owners to make delivery costs more affordable. “The improved commission rates are expected to ease the burden of most small business owners using our platform,” a Baemin official said.

“We have introduced the new system amid the long-lasting economic slump. We wanted to implement the new measure early this year to mitigate our member businesses’ financial burdens as fast as possible. The measure also follows the agreement for a mutual market ecosystem that the tripartite discussion group reached last year.

” The new system will charge lower commission rates to businesses with lower sales and higher commission rates to those with higher sales. The delivery fee charges have also been adjusted. Businesses that make the highest sales among Baemin’s member restaurants — in the top 35th percentile by sales — will be charged a commission rate of 7.

8 percent. Additionally, they will incur delivery fees ranging from 2,400 won ($1.68) to 3,400 won.

For businesses in the second-highest sales tier — those ranked between the top 35th and 50th percentile — the commission rate will be 6.8 percent, with delivery fees ranging from 2,100 won to 3,100 won. Similarly, businesses in the third-highest sales tier — those ranked between the top 50th and 80th percentile — will also be charged a 6.

8 percent commission rate but will benefit from lower delivery fees, ranging from 1,900 won to 2,900 won. Under the new system, restaurants with orders worth at least 30,000 won will benefit from cost reductions, compared to the existing structure. Those in the top sales block will save 100 won per order, while those in the second-highest block will save 700 won.

Restaurants in the third block will save 900 won, and those in the bottom block will benefit the most, with savings of 2,340 won per order. Coupang Eats, the second-largest food delivery app, plans to announce its new commission rating system in March..