Aju Business Daily

SEOUL -- A union of small business owners has criticized Baedal Minjok, the largest food delivery service app operator in South Korea, for making changes to commission from a monthly flat subscription to a fixed rate charged by the number of delivery cases.

Baedal Minjok, launched in 2011, is the most favorite food delivery app in South Korea. The service was used by restaurant operators for its flat monthly subscription fee of 88,000 won ($71.60). Baedal Minjok changed its fee system on April 1 to charge a 5.8 percent fee on delivery orders.

The Korea Federation of Micro Enterprise (KFME) said in a statement on Friday that the change would eventually increase the burden of small business owners. Baedal Minjok has said that the new system was aimed at having restaurants exposed equally to a list of delivery choices for customers.

Previously, those who pay extra advertising fees could have their restaurant advertised high on the list of delivery choices. Some restaurant owners with plenty of advertising funds have dominated the menu list, pushing down competitors.

"There will be stores that would have to pay more money for commission and those which would pay less," Baedal Minjok said, adding that smaller businesses and new restaurants would have a greater chance to save their operating fee. The company also said that the change would satisfy customers by providing a list of nearby or frequently ordered restaurants.