Delivery App Small Business Groups to Form "Private Win-Win Council"... "We Will Negotiate Directly with Platforms"

Five Small Business Organizations Announce Their Position on September 17
Launching “Private Delivery Platform Win-Win Council” to Directly Address Issues

Five organizations representing small business owners in the delivery platform sector have agreed to launch a “Private Delivery Platform Win-Win Council.” Amid growing difficulties in creating synergy through a delivery app social dialogue body led by the ruling party, the groups announced plans to resolve delivery app-related issues directly through private sector cooperation and communication.

On September 17, five small business groups—including the Federation of Small Business, the National Merchants Association, the Korea Foodservice Industry Association, the Korea Franchise Association, and the National Café Owners' Cooperative—held a press conference at the Korea Federation of Small and Medium Business in Yeouido and made this announcement.

Song Chiyoung, President of the Korea Federation of Small and Medium Business, announces the position of five small business organizations at a press conference held at the Korea Federation of Small and Medium Business in Yeouido, Seoul on the 17th. Photo by Korea Federation of Small and Medium Business

Song Chi-young, President of the Federation of Small Business, stated, “Even when sales occur, excessive delivery commission fees and an unreasonable settlement structure leave small businesses with nothing but losses,” adding, “Despite efforts from various sectors to overcome these challenges, there have been no tangible results for small business owners. In June, the Fair Trade Commission’s decision to dismiss the consent resolution pushed aside the possibility of an immediate fee reduction and meaningful compensation for damages, leading to protracted and unproductive legal disputes.” Previously, companies such as Woowa Brothers and Coupang had submitted a 360 billion won consent resolution to the Fair Trade Commission, aiming to support businesses on their platforms, but this proposal was rejected.

President Song further emphasized, “What small businesses urgently need now is not legal action in the future, but immediate cost reductions and tangible support policies. The five small business organizations directly affected by delivery platforms intend to address related issues through direct negotiations with platform companies.”

Currently, legislative proposals that would establish upper limits on delivery platform fees are under deliberation in the National Assembly. However, the organizations argued that it will be difficult for these measures to immediately address the emergency faced by many small business owners. They added that neither heavy fines nor judicial sanctions imposed by the Fair Trade Commission and other authorities lead to the genuine recovery of small business owners.

President Song warned, “Even if astronomical fines are imposed, the funds only go to state coffers, and the small business owners who suffered losses receive no compensation. Moreover, such measures destroy the capacity of platform companies to undertake fee reductions or run promotional support activities for small businesses on the ground.” He added, “We will form a major delivery platform council led by the private sector to directly develop practical, site-driven alternatives, such as the introduction of a mutually beneficial fee structure, improvements to unfair contract terms, and the launch of joint win-win initiatives.”

The five organizations also issued a statement calling for: ▲the participation of platform companies in the win-win council, and ▲policy and institutional support from the government and National Assembly for private-sector-led efforts towards mutually beneficial cooperation.

This content was produced with the assistance of AI translation services.