President Lee Jae-myung called for measures to dismantle what he described as a near-monopoly among food-delivery platforms such as Baedal Minjok and Coupang Eats, saying the commissions they charge small business owners are too high. He also stressed that the government should help publicly run delivery apps operated by local governments compete meaningfully with the private platforms. The president's sharp remarks have unsettled the delivery-platform industry, which recorded its highest-ever monthly payment volume in July amid a heat wave.
"There are complaints that delivery-app fees are too high," Lee said at a Cabinet meeting he chaired at the presidential office on the 25th. "At the very least, we need to create a system of real competition, but I judge this to be effectively a monopoly."
Real Competition With Public Apps Needed; Strong Oligopoly Burdens Small Merchants
When Nam Dong-il, vice chairman of the Fair Trade Commission, explained how delivery-platform operators had grown through acquisitions and mergers and said "the oligopolistic structure has become entrenched," Lee assessed the situation as "in effect a strong oligopoly." He added: "As a result, complaints are growing that delivery-fee burdens on small business owners keep rising. The ministries need to examine what measures can be taken to secure real competition."
In response, Lee Byoung-kwon, vice minister of SMEs and Startups, reported measures including marketing support for public delivery apps run by local governments. Lee then said: "Providing funding is necessary, but what matters more is getting them to integrate their operations. Bundle the operations as a whole, provide the support permitted under law or international trade rules, and focus on enabling them to compete effectively."
Called Platforms Disrespectful to Public, Exploitative of Small Merchants While Governor; Urged Phone Orders Over Public Apps
This is not the first time Lee has directly targeted delivery-app platforms. In 2020, while serving as governor of Gyeonggi Province, he posted on social media under the title "What Happens to Monopolistic Companies That Disrespect the Public and Exploit Small Merchants?" He wrote that "the public and consumers seem not to realize that they can either save a company or kill it," adding that "we will develop a public app as quickly as possible, but in the meantime we need measures, so a movement has begun to order by phone rather than through delivery apps, with shops offering incentives for phone orders." He also added: "Show them that consumers and the public are to be feared."
Delivery Apps Post Record July Payments Amid Heat Wave
Against this backdrop, the combined estimated payment volume of the four delivery platforms — Baedal Minjok, Coupang Eats, Yogiyo and Ttaenggyeoyo — hit a record high last month. WiseApp Retail said on the 25th that its sample survey of Koreans' credit- and debit-card payments estimated the four companies' combined payments at 3.2787 trillion won ($2.4 billion) in July, up 18% from 2.7889 trillion won a year earlier. WiseApp said the figure surpassed the previous record of 3.2004 trillion won set in May 2026, just two months later.
