, South Korea
Photo by Rowan Freeman on Unsplash

South Korean restaurants feel the pinch of surging delivery costs

Higher demand for food delivery workers has ramped up the cost of labour in the industry.

The rapid growth of South Korea’s food delivery market during the COVID-19 pandemic has inadvertently caused a sharp rise in delivery fees, leaving small business owners and consumers struggling to cope with the added costs, Korea Bizwire reported.

According to a government-issued report, the number of domestic delivery workers in South Korea has doubled in just three years, reaching 237,100 in the first half of 2022.

Amidst surging demand for food delivery services, delivery companies have been grappling with the challenge of securing enough delivery workers to meet the demand, compelling them to offer increasingly attractive pay packages. The higher cost of labour has been passed on to consumers through higher delivery fees.

READ MORE: Convenience stores go green in South Korea

Companies such as Baemin and Coupang Eats paid delivery workers an additional delivery fee of $1.54 (KRW2,000) to $1.92 (KRW2,500) per delivery in 2021 in order to secure their services. Some also offered prizes such as camping cars or pure gold.

Popular delivery apps such as Baedal Minjok and Coupang Eats said they have had to raise their brokerage and delivery fees in response to rising labour costs.

Consumers are paying almost the same amount for delivery as they are for their food, with the average delivery tip based on the maximum distance being $3.84 (KRW5,000) in February. The average amount for Baemin delivery tips was higher at $4.46 (KRW5,810).

Follow the link s for more news on

Join Retail Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

Miniso launches flagship store in Thailand
This is a key step in the group’s strategy to expand in Southeast Asia.
Stores
Gen Alpha set to dominate consumer market by 2040
Although they don't earn money yet, they are already influencing household spending.
Technology

Exclusives

Urban Revivo opens biggest branch in Bangkok
The Chinese fast fashion retailer’s 3,000-square meter store targets consumers aged 18 to 35.
Samsonite harnesses data to boost sales
The US luggage maker is boosting its online channel to drive revenue across Southeast Asia.