Small business owners in Incheon, who have been burdened by high commission fees from private delivery apps, are set to get relief. The city of Incheon is cutting commission rates to a quarter of current levels by expanding public delivery apps.
The Incheon city government will sign a memorandum of understanding with Mukkebi, Shinhan Bank and Kona I on Thursday to promote public delivery apps. Under the agreement, small business owners will be able to sharply reduce brokerage commissions from a maximum of 7.8 percent to below 2 percent.
The reduction amounts to 5.8 percentage points. A self-employed business owner with monthly delivery sales of 10 million won could save about 7 million won annually.
The platforms included in the agreement are Mukkebi, Ttangyeoyo and Baedal e-eum. Incheon plans to link the service with Incheon Love Gift Certificate payments to build a structure in which consumption circulates within the region.
"This is a win-win model that reduces the burden on small business owners while enhancing convenience for citizens," said Kim Sang-gil, head of Incheon's Economy and Industry Bureau. "We will manage the program thoroughly so that it can settle in stably."
