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Busan Metropolitan City Signs MOU with Shinhan Bank and Related Organizations to Promote Public Delivery App for Small Businesses

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Busan Metropolitan City (Mayor Park Heong-joon) announced that it will sign a memorandum of understanding (MOU) today (July 31) at 11:00 a.m. in the International Protocol Room of City Hall with Shinhan Bank, civic and consumer groups, and small business organizations to promote a public delivery app for local small businesses.

This agreement comes in response to the challenges small businesses face due to high commission fees charged by major delivery platforms. It aims to establish a partnership with Shinhan Bank, which operates the delivery app “DDangyo” with a significantly lower commission rate of 2%.

Participants in the signing ceremony include Mayor Park Heong-joon; Jeong Sang-hyeok, President of Shinhan Bank; the Standing Representative of the Busan Council of Civic Groups; the Chairperson of the Busan Council of Consumer Organizations; the President of the Busan Federation of Small Businesses; the President of the Busan Branch of the Korea Foodservice Industry Association; and the Head of the Busan-Ulsan-Gyeongnam Chapter of the Korea Franchise Association.

Under this agreement:

• ●Local small businesses can join and use the “DDangyo” app with only a 2% intermediary fee, without any additional onboarding, monthly usage, or advertising costs—significantly lower than existing private platforms.

• ●Partnering merchants will also receive various benefits from Shinhan Bank, including same-day settlement services and marketing support.

Organizations such as the Busan Federation of Small Businesses and the Busan Branch of the Korea Foodservice Industry Association will intensify promotional efforts to expand the number of merchants and users participating in the service.

Starting tomorrow (August 1), users will be able to pay with Dongbaekjeon on the “DDangyo” app and receive 7% cashback on purchase amounts. Additionally, consumption coupons provided through Dongbaekjeon for public welfare recovery can also be used on the app.

Please note, however, that cashback will not be applied when using these recovery coupons.

To enhance user convenience, the app's payment interface will be upgraded in September to display the available Dongbaekjeon balance directly within the “DDangyo” app.

Busan Metropolitan City expects significant synergy from this initiative in conjunction with the Ministry of Agriculture, Food and Rural Affairs' “Public Delivery App Activation and Consumption Coupon Project,” which offers a 10,000 KRW discount coupon when users place two orders of at least 20,000 KRW each through the “DDangyo” app.

Furthermore, an event will be held until August 31 for those using consumption coupons via Dongbaekjeon. When users spend 180,000 KRW or more at participating merchants using the coupons, they will be automatically entered into a prize draw offering additional incentives of 20,000 to 50,000 KRW in policy support funds.

• ●General users will be automatically entered if they spend at least 180,000 KRW with Dongbaekjeon by August 31.

• ●For merchants, signing up as a Dongbaekjeon partner by August 31 will qualify them for automatic entry.

Meanwhile, to help alleviate the difficulties of local small businesses, Shinhan Bank will provide a special fund of 14 billion KRW, part of a total 20 billion KRW support plan, for merchants registered on the “DDangyo” app.

• ●Each business may receive up to 100 million KRW in funding.

• ●The Busan Credit Guarantee Foundation will support the interest differential by 1%.

Mayor Park Heong-joon commented, “This agreement will help alleviate the management burden and boost sales for small business owners who are suffering under the prolonged economic downturn. The issue of delivery costs for small businesses is a critical challenge that the entire community must address together. We will continue to expand the merchant base on public delivery platforms and widen the scope of benefits that both merchants and consumers can directly feel.”