Seoul City monitors and manages the full scope of online restaurant sales through a new food delivery platform regulation that took effect last month. Officials revealed this initiative on March 16, highlighting a shift where offline restaurant transactions increasingly move online.
Market Surge Fuels Regulatory Action
The regulation targets booming online sales, particularly ‘cash-on-delivery’ orders, amid rapid growth in the sector. Last year marked the first sales surge in 13 years since 2012. Four years ago, records showed a peak of 503 monitored cases, 46,128 tons of food waste, and total sales nearing 427 billion won.
Recent data indicates the online shopping mall market reached 272 trillion won last year, up 25.93% from 216 trillion won in 2022. Live commerce sales grew 2.3-fold to 4.7 trillion won in the same period, driving higher volumes of online restaurant products and associated food waste.
Whistleblower Rewards Up to 200 Million Won
Authorities link online restaurant sales to policy support declarations for small and medium enterprises (SMEs), offering rewards up to 200 million won for accurate tips from citizens. Despite nationwide sales growth, public participation remains low, prompting this incentive program.
Reports can be submitted via the Seoul Smart Food Distribution app or the Minseang Delivery Center app. Eligible tips include counterfeit central products, purchase histories, business registrations, tax evaders, full refunds, partial reimbursements, buyer details, and captured chat records, all serving as key evidence.
Online orders often skip packaging fees and arrive directly, encouraging buyer participation during delivery. Sales from production, distribution, and consumption below 100 million won over seven years qualify for exemptions.
Agency Head Comments on Impact
The head of Seoul’s Small Business and Startup Promotion Agency stated, “Online cash-on-delivery sales reflect Seoul citizens’ strong purchasing power.” The official added, “By combining nationwide sales data with active citizen reports, we enhance overall distribution indices and ensure fair tax contributions.”
