# South Korean Regulators Fine Delivery Giants 631.9 Billion Won Baemin and Coupang face massive penalties for enforcing unfair most-favored-nation clauses on merchants. - **Source:** [Chosun Ilbo](https://www.chosun.com) - **Published:** 2026-11-09 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/cccab9d1-e678-4f1d-a3d7-a86bdff6dd9a ## Massive Regulatory Penalties Imposed South Korean authorities have issued a combined fine of 631.9 billion won against major delivery platforms Baemin and Coupang. This regulatory action targets the companies for enforcing restrictive trade practices. These platforms allegedly forced merchants to maintain price parity, preventing them from offering cheaper options on competing services or public apps. ## The Most-Favored-Nation Mechanism The core issue involves the enforcement of most-favored-nation clauses, which require merchants to offer the same prices or discounts across all platforms. By mandating these terms, delivery giants effectively eliminated price competition. Merchants found themselves unable to lower costs for consumers even when using platforms with significantly lower commission fees. ## Financial Burden on Small Merchants Small business owners report that these policies create a double financial burden. To run promotional discount coupons on one platform, they are contractually obligated to replicate the offer on others. This requirement forces restaurant owners to absorb higher marketing costs, directly impacting their profit margins and overall operational sustainability in Korea. ## Stifling Public Delivery Alternatives The enforcement of these clauses has specifically hindered the growth of public delivery applications. Even when these government-backed apps offer lower commission structures, merchants cannot pass those savings to customers. The platforms' rigid policies ensure that prices remain artificially high, preventing the market from benefiting from lower-cost digital infrastructure alternatives. ## Market Dominance and Price Control By controlling the pricing strategies of thousands of restaurants, these platforms exerted significant market power. The regulatory investigation concluded that such practices constitute an abuse of dominance. This intervention aims to restore competitive balance, allowing merchants to set independent pricing strategies based on the specific commission rates of each individual platform. ## Impact on Consumer Pricing Consumers have been indirectly affected by these policies, as restaurants were unable to offer lower prices on platforms with lower overheads. The inability to differentiate pricing meant that delivery costs remained uniform regardless of the platform's efficiency. This regulatory move seeks to decouple platform fees from final consumer menu prices. ## Regulatory Precedent for Tech Platforms This penalty sets a significant precedent for how digital marketplaces operate within South Korea. Regulators are signaling that platform-imposed price parity clauses will face strict scrutiny moving forward. The decision reflects a broader global trend of authorities challenging the restrictive business models of dominant tech intermediaries in the retail sector. ## Future Market Adjustments Expected Following the record fine, the delivery industry faces a period of structural adjustment. Platforms must now revise their merchant agreements to comply with fair competition laws. Observers will monitor whether these companies appeal the decision or if they will proactively change their terms to avoid further legal repercussions and reputational damage. ## Sources covering this story - https://www.chosun.com/economy/economy_general/2026/11/10/UTUIHBEE75ADZA4WKMH6NR5UI4/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._