[In-Depth Analysis - Baedal Minjok ②] Owner is German Delivery Hero... Recovering 4 Trillion Won Investment with 'Sincerity'

[글로벌에픽 안재후 CP] Baedal Minjok, a brand deeply rooted in the authenticity of South Korea. However, in reality, it is far from the brand. Most of the profits containing the sweat of South Korean small business owners and riders belongs to Delivery Hero headquarters in Berlin, Germany. Baedal Minjok, sold for 4.75 trillion won in 2020, is serving as a cash generator for global capital.

Woowa Brothers, the operator of Baemin, paid 4.127 billion won in dividends out of 6.998 billion won in operating profit earned in 2023, and in 2024, spent 5.327 billion won out of 6.408 billion won on share buybacks and retirement. About 20% of the investment was recovered in four years. Over 1 trillion won in funds flowed to headquarters in the last two years, and when added to the 120.4 billion won service fee paid to Delivery Hero, the actual outflow is even greater.

The problem is that in the process of Delivery Hero making big money, restaurant owners and riders are paying a certain price.

Over the past two years, Baemin raised intermediary commissions from 6.8% to 9.8%, and imposed a new 6.8% commission on takeout services. In the case of Baemin Plus, total commissions reach 10.8%, creating a situation where one-third of food prices must be paid as commission. Starting in 2025, they even raised click commission from 600 won to 1,000 won, a 66.7% increase.
'Road Runner' Forced Introduction Draws Sharp Criticism

The 'Road Runner,' a rider-exclusive dispatch app developed by Delivery Hero, is a symbolic example reflecting the headquarters' pressure on Baemin. Currently pilot-operated in areas like Osan and Dongtan in Gyeonggi Province, replacing the existing Baemin Connect, Road Runner is being evaluated by riders as more inconvenient than the existing app. Nevertheless, riders view Baemin's forced introduction of Road Runner as intended to pass Road Runner usage fees to Delivery Hero.

According to content raised in the parliamentary audit, it is estimated that approximately 100 billion won in annual royalties will be sent to the German headquarters due to Road Runner's introduction. In response, the National Assembly demanded immediate withdrawal, but the Baemin CEO repeated only vague answers such as 'we will improve during the pilot phase.'

Commission Hikes are 'Essential,' Dividends are 'Optional'

Restaurant owners feel that Baemin's logic regarding commission increases is also unconvincing. Baemin explained that after implementing free delivery policy, merchants' delivery fee burden increased by an average of 300 won, but in reality, commissions rose much more. According to a survey by Participatory Future, food prices rose by an average of 1,000 won annually after the free delivery policy was implemented.

In the end, the burden borne by consumers and merchants was entirely converted to Baemin's dividends and royalties, which led to profits for the German headquarters. In 2024, Baedal Minjok accounts for about 22% (4.3226 trillion won) of Delivery Hero's global revenue of 12.8 billion euros.
No Structural Improvements Despite Parliamentary and Fair Trade Commission Criticism

In October 2025 parliamentary audit, lawmakers from both ruling and opposition parties intensely criticized Baemin's unfair trading practices, Road Runner, and excessive commissions. Democratic Party lawmaker Kim Nam-geun said, 'Only headquarters is profiting on the sacrifices of domestic users and riders,' raising the issue of capital outflow from the delivery platform industry. Social Democratic Party lawmaker Han Chang-min also pointed out that 'Road Runner is ultimately a forced introduction to send royalties to headquarters through royalties.'

The Fair Trade Commission has also been promoting delivery app voluntary regulation measures since 2023, but substantial improvements remain insufficient. In its recent evaluation, the FTC stated, 'While there has been improvement in some items, the implementation rate for core tasks that reduce the actual burden on small business owners remains low.' Since voluntary regulations lack enforceability, there is no strong reason for Baemin to comply.

A more serious signal is emerging from mid-2025 onwards. As global investors in Delivery Hero demand business restructuring and asset sales, the pressure to maximize Baemin's profitability is intensifying.

Delivery Hero recently wound down its Thai operations and is pursuing the sale of Taiwan's Foodpanda. As shareholders push for tidying up loss-making regions and restructuring around profitable markets, Baemin's dependency is actually increasing. As a result, profit-squeezing from the Korean market has no choice but to proceed more blatantly.

Must Shed the Stigma of Eager to Recover Investment

Global investment bank UBS also assessed that 'Korean market competition has emerged as a major risk for Delivery Hero,' and major shareholders are showing interest in the direction of the Korean business itself. This is because they are aware of the increasingly fierce competition in the domestic delivery market.

There is nothing wrong with a global company with headquarters abroad taking money earned from the domestic market. However, it is a problem when it creates a feeling in users that they are being exploited by disrupting market order. Delivery Hero must shed the stigma of being eager only to recover investment and establish concrete implementation measures.

[글로벌에픽 안재후 CP / anjaehoo@naver.com]