The Korean Fair Trade Commission, which is currently investigating the corporate merger of the nation‘s No. 1 and 2 delivery apps, Baedal Minjok and Yogiyo, respectively, vowed stricter evaluation Tuesday, after Baemin’s attempt to change the commission system took flak.

Baemin restructured its fee system starting April 1, basically changing from a flat-sum system that requires restaurant owners to pay a monthly fee to a fixed-rate commission of 5.8 percent per order made on the app.

This has led to criticism from restaurant owners who say it imposes a higher cost burden on them, and claimed the company was abusing its monopoly power.

“The fact that the company could unilaterally change the commission system, when it is currently being investigated on merger for possible monopolizing, shows its market dominating power,” FTC Secretary-General Kim Jae-shin said.

The FTC said it will not only look thoroughly into the new fee system, but also make sure that the customer data, including personal information, collected by both Baemin and Yogiyo is managed properly.

“I cannot but express great concern that the new fee system has caused controversy,” Kim said. “So we will go further than the necessary merger evaluation to check on the effects of the restructured commission system, and whether it would lead to more cost burden for customers.”

Following growing complaints against its decision on the new fee system, Woowa Brothers, Baemin’s operator, issued an apology and said it will refund half the amount of the cost of its service for April.

“I humbly accept the criticisms that Baemin introduced the new fee system without taking consideration of the difficult situations restaurant owners face from COVID-19 outbreak, and sincerely apologize,” Woowa Brothers CEO Kim Beom-joon said in a statement.

Delivery Hero, which operates the country’s second- and third-largest food delivery apps Yogiyo and Baedaltong -- holding a combined market share of 44.3 percent -- seeks to acquire Baemin, which accounted for about 55.7 percent of market share here.

The corporate merger of Baemin and Yogiyo will be finalized after the fair trade watchdog’s confirmation.

By Jo He-rim (herim@heraldcorp.com)