🚨 Baemin Sale Rumors Return After 6 Years: What Will Delivery Hero Choose?

Today Korean Economic News | 2025.05.29

📌 Korean Market Struggles Officially Confirmed as Global Investment Banks Begin Contacting Potential Buyers

💬 Sale rumors around Baemin, which was bought for 4.7 trillion won in 2019, are surfacing again after 6 years. German company Delivery Hero (DH) officially mentioned Korea's poor market performance in their Q1 2025 earnings report, raising investor concerns. With Coupang Eats' aggressive expansion reducing market share, Asia region transaction volume dropped 8% year-over-year. Global investment banks say Delivery Hero's company value decline is serious, with some reportedly beginning to contact potential buyers. Delivery Hero's stock price has fallen to one-sixth of its 2021 peak.

1️⃣ Easy to Understand

Our familiar 'Baemin' might be sold again. It was sold to a German company 6 years ago, but now that company is struggling and considering selling Baemin again.

Let's first understand how Baemin became owned by a German company. In December 2019, Delivery Hero, a German food delivery company, bought Woowa Brothers (Baemin's parent company) for 4.7 trillion won. This was the largest internet company M&A deal in Korean history at the time.

Delivery Hero is a global company operating delivery services in over 70 countries worldwide. In Korea, they already operated Yogiyo and Baedaltong, and by acquiring Baemin, they controlled 98% of Korea's delivery market.

So what's happening now? Delivery Hero officially admitted "Korea's market is struggling" in their recent earnings report. Global companies usually don't single out specific countries, so mentioning Korea specifically means the situation is serious.

The biggest problem is increased competition. Coupang Eats has aggressively entered the market with free delivery and Wow membership, gradually taking market share from Baemin. In fact, total transaction volume in Asia (including Korea) decreased by 8% in Q1 2025 compared to the previous year.

What's more serious is that Delivery Hero itself is struggling. Their stock price dropped to one-sixth of its 2021 peak. This means the company's total value is only about twice what they paid for Baemin in 2019 (4.7 trillion won).

In this situation, global investment banks are saying "Delivery Hero might sell Baemin again" and have reportedly started contacting potential buyers. This is getting more attention because they previously withdrew from the Thailand market.

Basically, Baemin might meet another new owner. We need to watch what happens to this app we use so often.

2️⃣ Economic Terms

📕 M&A (Mergers & Acquisitions)

M&A means buying or combining companies.

• Acquisition: One company buys another company
• Merger: Two companies combine into one
• Baemin was 'acquired' by Delivery Hero in 2019.

📕 Market Share

Market share means how much of the total market a specific company controls.

• Baemin, Yogiyo, Coupang Eats, etc. divide up the delivery market
• Coupang Eats' aggressive marketing is slowly reducing Baemin's share
• Market share changes directly affect a company's future profits

📕 GMV (Gross Merchandise Value)

GMV means the total amount of money traded on a platform.

• It's the total value of food orders placed by consumers on delivery apps
• Only part of GMV becomes the company's actual revenue (fees, delivery charges, etc.)
• Decreasing GMV means fewer platform users or less frequent orders

📕 Company Value (Valuation)

Company value shows how much a company is worth.

• For public companies, it's calculated as stock price × number of shares (market cap)
• Delivery Hero's company value has dropped to one-sixth of its 2021 level
• Falling company value reflects investor concerns about trust and future prospects

3️⃣ Analysis and Economic Outlook

✅ Structural Causes of Delivery Hero's Poor Performance

• Let's analyze the background and meaning of Delivery Hero officially admitting Korea's market struggles.

  • First, Korea's delivery market competition structure has fundamentally changed. Asia business GMV in Q1 2025 decreased 8% (fixed exchange rate) year-over-year to 5.4 billion euros. This means Baemin can no longer maintain its past monopolistic position. Coupang Eats offers free delivery with Wow membership, giving customers more choices. Especially among young consumers, Coupang Eats' popularity is growing, shaking Baemin's traditional customer base. Also, domestic IT giants like Naver and Kakao are showing interest in the delivery market, making competition even fiercer.

  • Second, global economic slowdown and weakened consumer sentiment are affecting the entire delivery market. Unlike during the COVID-19 pandemic, recent return to dining out has reduced delivery orders. With high inflation and rising interest rates reducing household spending power, more consumers are choosing to cook at home or dine out rather than order relatively expensive delivery food. GMV means the total payment amount consumers make on apps, and only delivery fees, advertising fees, etc. become company revenue. Therefore, decreased orders directly lead to reduced profits.

  • Third, Delivery Hero's failed global strategy is adding burden to the Korean business. Delivery Hero's stock traded at 120 euros in 2021, six times the current price, but now it's heavily shaken by poor performance from major subsidiaries worldwide. They operate in over 70 countries but most are losing money, especially serious losses in European and Latin American markets. This creates pressure to extract more profits from Korea, one of the few profitable markets. Actually, Baemin raised fees from 6.8% to 9.8% to improve profitability, but this could lead to merchant backlash and weakened competitiveness.

• Delivery Hero's poor performance results from dual pressure: structural changes in the global delivery market and intensified competition in the Korean market, not just temporary issues.

✅ Reality and Impact of Renewed Sale Rumors

• Let's predict the possibility of Baemin's sale and resulting market changes.

  • First, Delivery Hero's financial situation makes selling a realistic option. Most importantly, the company's total value is only about twice the 4.8 trillion won they spent acquiring Woowa Brothers in 2019. Having total company value at only twice the past acquisition cost means very low return on investment. Moreover, with continuous losses in other global regions making cash procurement urgent, selling Baemin could be a strong means of short-term fundraising. Looking at their past withdrawal from Thailand, Delivery Hero is a company that boldly exits markets with poor profitability or fierce competition.

  • Second, increasing interest from potential buyers is making the sale possibility real. Domestically, Naver and Kakao might show interest, while internationally, global platform companies like Uber Eats or Amazon are mentioned as candidates. Korea's high delivery usage rate and advanced digital payment systems are still considered attractive investment opportunities. Also, Baemin's built brand value, customer base, and market share that still maintains first place could be sufficient attractions for buyers. News that global investment banks have already started contacting potential buyers suggests the sale might be an actual ongoing project, not just speculation.

  • Third, if a sale happens, major changes in Korea's delivery market structure are expected. If a domestic company acquires Baemin, the approval process by the Fair Trade Commission would be complex due to monopoly concerns. If a foreign company acquires it, global standard service innovations could happen, but side effects from policies unsuitable for domestic situations are also concerning. Any scenario would inevitably bring changes to delivery fee systems, service policies, and employment structures. Especially, how Baemin's current delivery drivers, customer data, and merchant networks are utilized could vary according to the new owner's strategy.

• Baemin sale rumors are realistic scenarios emerging from global delivery market restructuring, not just simple rumors. This is expected to directly and indirectly affect Korean consumers and merchants.

✅ Future Outlook and Response Strategies for Korea's Delivery Market

• Let's examine long-term prospects for Korea's delivery market and response plans for each stakeholder, using the sale rumors as a starting point.

  • First, Korea's delivery market has entered maturity where profitability matters more than growth. The delivery market that explosively grew during COVID-19 has now entered a stabilization phase. While the total market size remains large, acquiring new customers is becoming difficult, making it more of a zero-sum game competing for existing customers. In this situation, service differentiation and operational efficiency become core competitiveness rather than reckless discount competition. Baemin is working on profitability improvement by expanding 'Baemin Delivery' (their own delivery service) and strengthening 'Baemin Club' (subscription service). However, balanced approaches are needed to ensure these changes don't lead to decreased customer satisfaction.

  • Second, changing competitive dynamics will give consumers and merchants more choices. Coupang Eats' growth and possible market entry by Naver and Kakao are positive factors that could break up the existing oligopoly structure. As competition intensifies, consumers can receive better services and benefits, while merchants can choose platforms with more favorable conditions. However, negative effects of excessive competition should also be considered. If platforms pursue unsustainable discount policies to secure market share, it could harm all participants in the long run. Therefore, the government should also prepare appropriate regulatory measures for market stability along with creating fair competitive environments.

  • Third, technology innovation and new business model adoption will be key to market competitiveness. New technologies like AI-powered delivery optimization, robot delivery, and drone delivery are being introduced to the delivery industry. Also, 'super app' strategies expanding service areas beyond simple food delivery to daily necessities and medicine are becoming important. Just as Coupang Eats secured competitiveness using Coupang's logistics infrastructure, each platform must build their own differentiated competitive advantages. For Baemin, they should utilize intangible assets like brand recognition and customer loyalty while strengthening these through new technology and service innovations.

• The future of Korea's delivery market will be determined by existing players' ability to adapt to changes and how new competitors enter the market. Consumer-centered service innovation and building sustainable business models will be keys to success.

4️⃣ Conclusion

The renewed sale rumors around Baemin after 6 years are realistic scenarios reflecting structural changes in the global delivery market, not just simple rumors. Delivery Hero's poor performance combined with intensified competition in the Korean market has created a new turning point.

The most notable point is that Korea's delivery market is transitioning from growth to maturity phase. The explosive growth during COVID-19 has ended, and competition for limited market share has begun. Coupang Eats' aggressive marketing and free delivery policies are creating cracks in Baemin's monopolistic position, which is a positive change giving consumers more choices.

From Delivery Hero's perspective, selling Baemin is becoming a realistic option. While Baemin remains a valuable asset amid urgent cash needs due to poor global business performance, uncertainty about future profitability is growing due to intensified competition in the Korean market.

If a sale happens, Korea's delivery market landscape will change significantly depending on who the new owner becomes. If a domestic company acquires it, there will be market monopoly concerns and strict regulatory review. If a foreign company acquires it, there could be global standard service innovations but also difficulties with localization.

Consumers and merchants should use these changes as opportunities. As competition intensifies, they can expect better services and conditions, but must also respond sensitively to policy changes from each platform. Especially merchants need strategies utilizing various channels rather than depending on just one platform.

Ultimately, these sale rumors signal that Korea's delivery market is entering a new phase. Companies and consumers who adapt to changes and secure competitiveness through innovation will be the winners. With specific results expected within the next few months, market participants' attention is focused on this development.