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Restaurants go delivery-only as Baedal Minjok slaps commission fee on pickups

Published: 14 Apr. 2025, 13:44 Updated: 14 Apr. 2025, 14:43

Business owners hold a protest in front of the Woowa Brothers, operator of Korea's largest food delivery app Baedal Minjok, or Baemin, headquarters in Songpa District, southern Seoul, on Feb. 24. [YONHAP]

Baedal Minjok, Korea's largest food delivery service, began collecting commissions on takeout orders on Monday, driving some restaurant owners to pull the option from the platform.

Starting Monday, restaurant owners on the platform, which is also known as Baemin, must pay a commission fee of 6.8 percent, excluding value-added tax, on pickup orders. The fee applies to existing business owners as well as new sign-ups.

Baemin first announced in July 2023 that it would raise its delivery commission rate from 6.8 percent to 9.8 percent and introduce fees on pickup orders as well. However, it had offered a grace period: New merchants would receive a 50 percent discount on pickup commissions until March 2025, and existing merchants were temporarily exempt.

The new change has sparked renewed frustration among restaurant operators, some of whom have long expressed concern regarding the growing burden of platform fees.

With the grace period ending, some business owners say they've discontinued pickup orders through the platform.

A delivery worker waits in front of chicken joint in Seoul on Jan. 22 [NEWS1]

Several posts on online forums for small business owners in recent days show users stating that they'd canceled their Baemin pickup services. One restaurant operator said they had switched to using Naver’s takeout system instead.

In response to the fee expansion, Baemin said it would invest around 30 billion won ($21 million) annually into marketing and promotional campaigns. These campaigns are intended to provide discounts to customers and help business owners attract new orders.

Currently, pickup orders account for only about 5 percent of all transactions made through Baemin, with most users still opting for delivery.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.

BY JEONG JAE-HONG [[email protected]]