South Korean small businesses face rising delivery app fees

A survey by the Korea Federation of SMEs reveals that small business owners using delivery apps are facing significant financial pressure, with transaction costs exceeding 26% of their monthly revenue. This figure is notably higher than the costs associated with online shopping malls (20.6%) and accommodation apps (18.3%).

Among the surveyed businesses, the burden varied widely, with some delivery app merchants spending as much as 45% of their revenue on platform costs. The report indicates that existing measures, such as the differential commission system, have been largely ineffective, with 84.8% of respondents stating the system provides little to no help. Consequently, 51.1% of participants expressed a need for a total commission cap, and 66.9% supported the enactment of an Online Platform Fairness Act to regulate unfair trade practices.