South Korea’s Fair Trade Commission (FTC) has taken a major step toward possible sanctions against Baemin, one of the country’s largest food delivery platforms. According to sources familiar with the matter, the regulator recently sent a statement of objections to the company after completing an investigation into its business practices.
The inquiry began when concerns surfaced that Baemin may have pressured restaurants to use its own delivery option, known as “Baemin delivery.” Many restaurants in the country choose their own couriers or rely on alternative delivery companies. However, some reported that they felt guided or pushed toward using Baemin’s service, even when they preferred another method.
The FTC reviewed these complaints and examined how the platform interacted with food establishments. The statement of objections outlines what the regulator believes may be violations of the Fair Trade Act. This shows that the investigation has progressed to a stage where official penalties are being considered.
Why the investigation matters in the delivery market
The delivery market in South Korea is extremely competitive, with many restaurants relying heavily on apps to receive orders. Because Baemin is one of the most commonly used platforms, any actions it takes can significantly influence how restaurants operate.
For many restaurants, delivery choices impact their daily operations. Using different couriers may affect delivery speed, customer satisfaction, or overall costs. If a restaurant feels limited in its ability to choose, it could face challenges in managing its business. That is why the FTC’s examination of Baemin’s practices has drawn significant attention.
The sending of a formal objection notice does not mean that penalties are guaranteed, but it does show that the regulator has found enough information to raise concerns. The next steps depend on the company’s explanation and the strength of the evidence reviewed.
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Company response and next steps for the regulator
Woowa Brothers, the operator of Baemin, now has the opportunity to reply to the FTC’s objections. In this response, the company can present documents, clarifications, and explanations about its practices. This is a standard part of the process whenever a regulator considers sanctions.
After receiving the company’s reply, the FTC will review the information again. It will then decide whether Baemin violated the fair trade act. If the regulator concludes that the allegations are supported, it may issue corrective orders or impose fines.
Corrective orders may require Baemin to adjust or stop certain business practices. Fines, if applied, serve as a penalty for actions that go against the rules governing fair market competition. No final decision has been made yet, and the timeline for the ruling has not been disclosed.
According to sources, the regulator is moving steadily toward a conclusion. However, the final outcome will depend on the company’s response and the evidence gathered during the investigation.
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A similar review involving Coupang Eats
The FTC is also examining business practices linked to another major delivery service, Coupang Eats. In this case, the regulator is looking into claims that restaurants were pushed into purchasing bundled services connected to the platform’s operator. Bundle sales can cause concern when businesses feel forced to buy extra services they do not need.
Like the Baemin investigation, the review of Coupang Eats focuses on whether restaurants faced unfair pressure. The regulator is checking if such practices limited the choices available to food establishments.
Both investigations highlight the FTC’s focus on ensuring fairness in the food delivery industry. With so many restaurants depending on these platforms, the regulator wants to ensure that they operate without facing unnecessary restrictions.