The Ministry of Land, Infrastructure and Transport (Minister Won Hee-ryong) announced on July 27 that it had selected ‘Elegant Youth’ and ‘Barogo’ as the first parcel delivery service certification providers*.
* A person who is certified by the Minister of Land, Infrastructure and Transport as a person who directly delivers cargo using a two-wheeled vehicle or conducts a brokerage business using information and communications networks, etc.
In accordance with the 「Lifestyle Logistics Service Industry Development Act」 enacted in ’21, a system to grant certification to companies that provide safe and convenient small package delivery service was introduced. The first certification was granted to the two companies after preparing for standards and other preparations.
The small package delivery service business, commonly referred to as the ‘delivery business’, has grown significantly since the Corona 19, but it is operated as a free business. There was an opinion that
* Delivery market size (online food transaction amount): 9.7 trillion won in 2019 → 17.3 trillion won in 2020 → 25.6 trillion won in 2021
The purpose of this certification system is to induce autonomous competition in the market and raise the overall service level by certifying companies that provide excellent services such as promoting worker safety and enhancing consumer convenience.
The certification of the parcel delivery service provider was finally decided by the Ministry of Land, Infrastructure and Transport and the certification committee made up of private experts after going through documentary and on-site examinations by the Korea Transportation Research Institute (President Jae-hak Oh), an examination agency, and experts in each field.
The evaluation focused on the level of safety assurance such as safety education and accident prevention measures, and the level of employee protection such as the insurance subscription rate and the use of standard contracts. It also evaluated whether it has stability and sustainability of operation.
As a result of the examination, ‘Elegant Youth’ for the integrated platform* and ‘Barogo’ for the separate platform** received the first certification, respectively.
* Integrated platform: Integrated form of information network operation and direct delivery service
** Separate platform: A form of intermediary for delivery by a local agency through an information network
‘Elegant Youth’ is a company that operates the delivery infrastructure of the ‘Baedal Minjok’ app and the Baemin B Mart downtown and wide area logistics center. The efforts to protect workers and traffic safety were highly evaluated.
‘Barogo’, as a leading company that provides small package delivery brokerage service through a nationwide network, drew attention as it continues to pursue its vision as an innovative comprehensive logistics platform company by building eco-friendly two-wheeled vehicle infrastructure and building a hyper-connected data platform.
The Ministry of Land, Infrastructure and Transport plans to expand the certification of companies that provide excellent services by accepting applications for certification at all times. .
Heon-sang Koo, director of logistics policy at the Ministry of Land, Infrastructure and Transport, said, “We expect this certification as a small package delivery service provider to become a cornerstone for the advancement of the delivery industry. It will contribute to the creation of an ecosystem.”
In addition, he said, “We hope to actively participate in the certification system as we plan to support certified companies from various angles, including support for establishment of associations and mutual aid associations centered on certified companies.”
