South Korean delivery platforms face rising consumer complaints and regulatory scrutiny

Consumer complaints regarding major food delivery platforms in South Korea, including Baedal Minjok, Coupang Eats, and Yogiyo, have risen significantly. Data from the Korea Consumer Agency shows that between 2021 and August 2024, 9,430 consumer consultations were recorded, a more than threefold increase compared to 2021.

Key issues include food quality and service disputes, which accounted for approximately 25.7% of complaints, and contract non-fulfillment or incomplete service, making up 23.4%. Baedal Minjok accounted for 74.3% of the total cumulative complaints.

During a recent National Assembly audit, Baedal Minjok executives admitted to using an integrated dispatch system that combines ‘single-order delivery’ (a premium service) with ‘economical delivery’ (multi-order delivery). This practice can cause delays for economical delivery users when a single-order request is prioritized, a fact the company admitted was not clearly communicated to consumers.

Additionally, Baedal Minjok faces scrutiny over its ‘Promotion Only’ policy. Allegations suggest the company restricts partner merchants from participating in discount events on competing delivery apps during promotional periods. The Fair Trade Commission is investigating whether these practices unfairly limit the choices of merchants.