KR — ZDNet Korea
Coupang Eats Fee and Delivery Cost Controversy Raised at National Audit; CEO Kim Myung-gyu Says 'We Will Improve'
Policy2 min read
At a National Assembly audit, lawmakers pressed Coupang Eats over its fee system and delivery costs for shop owners. The CEO, Kim Myung-gyu, said the company would work on improvements.
What happened
At a parliamentary audit on the 23rd, lawmakers questioned Coupang Eats CEO Kim Myung-gyu about how the app charges fees to restaurants that sign up to use it. Lawmakers Oh Se-hee and Song Jae-bong said owners pay fees on prices that include discounts the owners paid for themselves. Kim admitted the company did not accept a Fair Trade Commission request to fix the fee rules. He said the company would review bad reviews and refund rules and join talks with small businesses.
Key numbers
- Example: a 20,000 won meal with a 5,000 won owner discount. The customer pays 15,000 won, but the fee is based on 20,000 won.
- At a 7.8% fee rate, the owner pays 1,560 won. That is 10.4% of the actual 15,000 won paid.
- Lawmaker Song cited a Korea survey saying the platform burden on Coupang Eats is 27.6%.
- Kim could not say how many businesses get the lower fee rate under the shared-growth fee plan.
Background
Delivery apps earn money by charging restaurants fees on each order. A shared-growth fee plan lowers fees for some sellers based on how much business they do. Free delivery is another issue. Restaurants may pay part of the delivery cost, while the customer used to pay it. Kim said the company now covers the gap between what it gets from owners and what it pays riders.
Why it matters
Many small restaurant owners depend on delivery apps for sales. If fees are counted on prices that owners already discounted, owners may lose money on every order. Rules about bad reviews and refunds also affect whether owners can protect their income. The debate shows how the government and lawmakers want platforms to share costs more fairly.
What to watch
- The Fair Trade Commission's investigation into the fee rules.
- Whether Coupang Eats changes how it counts discounts in its fees.
- The exact amount the company pays to cover delivery costs, which Kim promised to submit later.
- Whether a new group with owners and riders is formed to talk about fair terms.
Glossary
- Coupang Eats
- A food delivery app run by Coupang that connects customers, restaurants, and riders.
- National Assembly audit
- A review where lawmakers question officials and company leaders about their work.
- Fair Trade Commission
- Korea's government agency that checks unfair business practices and sets fair trade rules.