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Win Big, Lose Bigger: The Shocking Truth Behind Korea’s 1 Million Won Jackpot

Win Big, Lose Bigger: The Shocking Truth Behind Korea’s 1 Million Won Jackpot

September 10, 2024 Catherine Williams - Chief Editor Business

Delivery‌ Platforms’ Fees:⁤ A Heavy Burden on Self-Employed Restaurants

According ⁤to a recent investigation​ by‍ the Fair⁢ Trade Commission, self-employed restaurants ‍that earn 1 million won through delivery platforms pay approximately⁢ 240,000 won to the platform.

The findings were​ shared at the fourth ⁤win-win council meeting between the⁤ distribution platform‍ and store companies, which took place on the 10th.

A survey of 293 stores, conducted in July last year in collaboration with the Korea Restaurant Industry‍ Association, revealed that various costs ‌associated with using delivery platforms account for 24% of sales ⁢generated ​through the platform.

These costs ⁢include ⁢brokerage fees, payment fees, delivery ⁣fees, and ‌other expenses.⁤ Variable costs accounted for ⁢13% of sales, while the average ‌operating profit ratio of‍ delivery apps was found to be 7%.

The win-win council aims to continue discussing ​ways to alleviate the burden on​ self-employed restaurants, including reasonable fees, with the goal of establishing a win-win plan by⁣ the end of ⁣October.

To support small and ⁣medium business ‌owners, the government ⁢plans to provide ‍promotional expenses for⁣ public⁣ delivery apps with low commission fees, such as ‘Daenggyoyo.’ ‌Additionally, the government will cover delivery and shipping costs up to ⁢300,000‌ won per‌ year for eligible business owners ‌starting next⁢ year.

Key‌ Statistics:

  • 24% of sales generated ⁢through ⁣delivery platforms go towards various ⁤costs
  • 13% of sales ‍are variable costs
  • 7% is⁣ the ‍average ‌operating profit ratio ‍of‍ delivery apps

Government Support:

  • Promotional expenses‍ for public delivery apps ​with low commission fees
  • Delivery ‍and shipping costs covered​ up to 300,000 won per year for small and medium business owners

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