Why does South Korea have a High Delivery Fee and How can It be Decreased

During the coronavirus pandemic in 2019, the South Korean government ordered a full lockdown. Shop hours were restricted, and gatherings of more than four people were prohibited. It was difficult for people to adjust to this new lifestyle. Koreans, known for their “Must-Go Restaurant Tour”—a tradition of trying out highly recommended restaurants in specific areas—were desperate to continue this practice. Eventually, they found a solution: food delivery. From then on, delivery services boomed in South Korea. The app “Baedal Minjok” (BaeMin) became the most popular, and some restaurants even opened exclusively for delivery. Even after the lockdown, many people preferred ordering food over visiting restaurants. However, the delivery apps have significantly raised their fees, causing frustration among consumers. 

The base delivery fee is 5,000 won. Unfortunately, that’s not the full cost. For every additional 500 meters beyond 2 kilometers, 770 won is added to the fee. For example, if the destination is 4 kilometers away, the total fee would be 8,080 won, and if it’s 6 kilometers away, the fee would exceed 10,000 won. If the user requests “BaeMin1,” which provides the fastest delivery, the base fee starts at 8,000 won. In many cases, the delivery fee ends up being higher than the cost of the food itself. For instance, if the food costs less than 8,000 won, and the customer orders a double-sized portion (a common practice in Korea), the fee can easily surpass the price of the meal. Consumers are frustrated, wondering why they should pay a fee that exceeds the food cost. Delivery drivers explain that the higher fees are due to the increased personal expenses required for faster service. 

In response, consumers have united in a silent protest. Many have stopped ordering food through the app, while others have voiced their dissatisfaction in the app’s comment section. This led to a significant change: the delivery apps announced that they would waive delivery fees if consumers subscribed to a monthly plan (2,900 won) and ordered more than 15,000 won worth of food. While this addresses the problem to some extent, it remains unclear whether this solution will last. A more sustainable policy is needed to prevent future issues.

Works Cited 

안혜원 (2024, April 5). “배달비 무료” 전쟁 벌어졌다…쿠팡·배민 이어 요기요도 참전. 한국경제. https://www.hankyung.com/article/202404052183g

“배달비가 8000원?” 음식값보다 비싼 배달비 ‘충격.’ MS투데이. (2023b, May 17). https://www.mstoday.co.kr/news/articleView.html?idxno=83613

By. Jiheon Ryu