Baemin: "No Fees on Merchant-Funded Discounts; 110 Billion Won in Annual Savings"

CEO Kim Bumseok: "We will continue to pursue practical win-win measures"

Baedal Minjok (Baemin) will exclude the full cost of discounts paid by merchants on its platform from the calculation of platform fees. In addition to discounts on food prices, it will also exclude discounts on delivery fees offered to customers. Baemin estimates that merchants will save a total of 110 billion won in fees annually as a result.

Woowa Brothers, the operator of Baemin, announced on November 12 that it plans to revise the terms of service for Baemin Delivery to reflect these changes. Under the revision, discounts funded by merchants will be excluded from the calculation of both brokerage fees and payment settlement fees.

Baemin has continued to improve its operating policies based on the principle that merchants should not bear platform fees on discounts they fund. In line with this policy, it has not included discounts on food prices in the calculation of brokerage or payment settlement fees since the service launched. In May last year, it also established a system to identify the portion of discount coupons issued by franchise headquarters that was paid for by franchisees, and excludes that amount from fee calculations as well. Baemin said the latest decision follows the same principle and reflects requests received through discussions with major small-business groups in the restaurant industry.

With this approach, merchants will be able to offer discounts on delivery fees, which can significantly increase sales, without incurring fees on those discounts. For example, if a merchant offers a 3,000-won discount on an order worth 25,000 won, Baemin will calculate fees only on the remaining 22,000 won, regardless of the type of discount. Compared with a system that does not deduct discounts from the fee calculation, merchants could save around 300,000 won in fees per month, or around 3.5 million won per year, assuming 30 delivery orders per day. Baemin said its estimate puts the total annual fee savings for all merchants at 110 billion won.

Bum Seok Kim, CEO of Woowa Brothers, said, "This revision further strengthens our operating principle of deducting discounts funded by merchant partners when settling platform fees. We will continue to pursue practical measures that ease the burden on our partners and translate into benefits for customers."

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