South Korea plans to form a public-private consultative group to address the rising costs of food delivery fees this month to help lift the burden on restaurant owners, the government announced Wednesday. The plan is part of pangovernmental measures to support small business owners. Government officials, delivery platform operators and experts in the food service industry are to join the self-regulatory consultative group to be launched this month.
The group will announce ways to bring down the commission paid to food delivery platform operators within this year. The government further warned the antitrust regulator Fair Trade Commission will take action in case platform operators are caught employing unfair practices, such as passing on expenses to listed restaurant owners. The measure comes as food delivery platforms here have been launching free delivery services amid intensifying market competition.
There are concerns the platform operators may attempt to offset the costs by raising commissions on restaurant owners. The government will also push to partly cover the cost of delivery fees for business owners who are going through financial difficulties. Further details are to be included in the governmental budget for next year.
Meanwhile, the Korean government will put in a total of 25 trillion won ($18 billion) to help small business owners pressured by low consumption amid the reign of high interest rates. Of the 25 trillion won, some 14 trillion won will be to extend lo.
