🚨 Platform Labor: New Forms of Labor and Issues in the Digital Era

Today Korean Social News | 2025.04.11

📌 Baemin (Delivery App) Workers Protest Against Delivery Fee Policy Changes

💬 Delivery workers have protested after Baemin implemented policy changes that increase the basic delivery distance while lowering the basic fee. The Delivery Platform Workers' Union of the Korean Confederation of Trade Unions held an emergency protest rally in front of Baemin headquarters in Songpa-gu, Seoul on the 10th, criticizing the unilateral contract changes. On January 24, Baemin announced policy changes including ▲reducing the basic delivery fee from 3,000 won to as low as 2,200 won ▲increasing the basic delivery distance from 675m to 1,400m ▲reducing the weather surcharge from 1,000 won to 500 won. Workers criticized these changes, arguing that the unilateral reduction in delivery fees without consultation leads to low wages, long working hours, and unsafe working conditions.

Summary

• Platform labor refers to a new form of work where tasks are performed through online platforms.
• Platform workers benefit from flexibility and low entry barriers, but face challenges like income instability and lack of social protection.
• With the increase in platform labor, protecting workers' rights, building social safety nets, and establishing fair fee structures have emerged as important social challenges.

1️⃣ Definition

Platform labor refers to a form of work where workers find jobs, provide services, and receive compensation through digital platforms (apps or websites). Simply put, it means working through digital platforms such as delivery apps, designated driver apps, and housekeeping apps.

Unlike traditional employment relationships, platform labor often forms "independent contractor" relationships between platform companies and workers, drawing attention as a new form of labor.

💡 Why is it important?

• Platform labor is rapidly increasing with the development of digital technology, affecting many people's lives.
• Existing labor laws and social security systems often fail to adequately protect platform workers, creating blind spots.
• It has become an important issue determining the future of work alongside the growth of the platform economy.

2️⃣ Characteristics and Current Status of Platform Labor

📕 Types and Characteristics of Platform Labor

• Platform labor exists in various forms. Platform labor can be largely divided into two types. First, location-based platform labor involves providing face-to-face services in specific areas. This includes delivery riders, designated drivers, and housekeepers. They receive orders through apps and provide services on-site. Second, web-based platform labor involves providing services in online spaces. This includes freelance designers, translators, and IT developers who can work regardless of location. Platform labor can also be classified as "gig work" or "crowd work" based on the work method. Gig work involves providing short-term, one-time services like delivery or driving, while crowd work involves multiple unspecified workers performing tasks on online platforms.

• Platform labor has unique characteristics. The characteristics of platform labor are as follows. First, it offers high work flexibility. Workers have the autonomy to work when they want and refuse when they don't. Second, it involves non-standard employment relationships. Most platform workers work as "independent contractors" rather than regular employees, with platforms emphasizing their role as "intermediaries." Third, it applies algorithmic management. Algorithms often handle task allocation, performance evaluation, and compensation decisions instead of human managers. Fourth, it relies on rating systems. Service users' evaluations directly impact workers' jobs and income. Fifth, it has low entry barriers. It provides new employment opportunities as people can easily start without special qualifications or experience.

📕 Current Status of Platform Labor in Korea

• The domestic platform labor market is growing rapidly. Korea's platform labor market has grown rapidly with the spread of smartphones. According to a Ministry of Employment and Labor survey, the number of platform workers in Korea is estimated at about 2.2 million as of 2024, accounting for about 8% of all employed persons. Platform labor has particularly increased in delivery and household services as demand for non-face-to-face services grew after COVID-19. Major platform companies include Baemin and Coupang Eats in delivery, Kakao T in designated driving, and housekeeping services such as Daeri-Jubu and Cleaning Lab. Demographically, while 20-30 year olds make up a high proportion of platform workers, participation among 40-50 year olds is also increasing recently. Many participate as side jobs or second jobs rather than primary employment.

• Platform workers face various challenges. The main difficulties platform workers face include: First, income instability. Work volume fluctuates greatly, and platforms' unilateral changes to fee structures or compensation systems make income unpredictable. Second, blind spots in social security systems. Most are classified as independent contractors and often don't receive benefits like employment insurance or industrial accident insurance. Third, excessive workloads and safety issues. Delivery riders in particular are exposed to accident risks when making rushed deliveries. Fourth, vulnerability to algorithmic control and surveillance. Workers are forced to comply with performance standards and evaluation systems unilaterally set by platforms. Fifth, difficulties in collective bargaining. The dispersed nature of work makes it difficult to raise collective voices, and there are constraints on asserting rights as workers.

Key Issues in Platform Labor

1. Recognition of worker status: Whether to view platform workers as employees or independent contractors
2. Algorithmic transparency: Fairness and transparency in task allocation, evaluation, and compensation determination processes
3. Fee structure: Appropriateness of intermediary fees taken by platforms and their determination process
4. Social security application: How to apply social security systems like employment insurance and industrial accident insurance
5. Safety issues: Safety concerns, especially in transportation-related labor like delivery and designated driving
6. Right to negotiate working conditions: Collective bargaining rights for compensation and working conditions
7. Data rights: Ownership and utilization rights of data generated during the work process
8. Training opportunities: Lack of vocational development and career growth opportunities
9. Platform responsibility: Social responsibility of platforms beyond their intermediary role
10. Regulatory approach: Application of existing labor laws vs. establishing new legal frameworks

3️⃣ Issues and Challenges in Platform Labor

✅ Legal Status and Rights Protection

• The legal status of platform workers is a key issue. The legal status of platform workers is an important issue that determines the application of various rights and protections. Currently, most platform workers are legally classified as "independent contractors" or "self-employed." In this case, they are not protected by labor standards laws regarding minimum wage, annual leave, or working hour limitations. However, many actually work under the direction and control of platforms, leading to criticism of "disguised self-employment." Consequently, court rulings recognizing platform workers as employees are increasing worldwide. In Korea, there have been some rulings recognizing the employee status of certain delivery riders and designated drivers. However, it's difficult to judge all platform workers by a single standard, so discussions about introducing a "third category" or other new legal classifications are also taking place.

• Collective organization and bargaining rights for platform workers are important. Platform workers find it difficult to raise collective voices due to the dispersed nature of their work. However, movements toward collective organization for rights protection have recently become more active. In Korea, organizations like Rider Union and the Delivery Platform Workers' Union are working to be recognized as workers under the Trade Union Act. They are increasing their bargaining power with platform companies through strikes and rallies. Some platforms have formed consultative bodies with worker representatives or established regular communication channels. Recently, there have been increasing demands for information disclosure and consultation regarding algorithmic control, evaluation systems, and fee structures. Collective bargaining rights for platform workers are an important means to improve unfair contract conditions and enhance the working environment.

✅ Social Safety Nets and Welfare

• Building social safety nets for platform workers is necessary. Most platform workers fall into blind spots of traditional social security systems. The following approaches are being discussed to build social safety nets for them: First, expanding employment insurance coverage. In Korea, there are movements to extend employment insurance to platform workers as part of the "Universal Employment Insurance" policy, following special types of workers. Second, industrial accident insurance coverage. Efforts are being made to include platform workers in dangerous occupations like delivery and designated driving as mandatory industrial accident insurance subscribers. Third, developing new social insurance models. Flexible premium payment and benefit systems are needed considering the irregular income characteristics of platform workers. Fourth, income support during illness or injury. Income support systems are required for platform workers who don't have paid sick leave. Fifth, portable welfare benefits considering labor mobility. Welfare systems need to consider the characteristics of workers who move between multiple platforms.

• Vocational skill development and career management are also important challenges. While platform labor has low entry barriers, opportunities for career advancement and vocational skill improvement are often limited. The following approaches are being considered to improve this: First, developing customized vocational training programs. Flexible training courses considering the characteristics and schedules of platform workers are needed. Second, strengthening platforms' responsibility for education and training. Platforms should be encouraged to invest in worker capacity development beyond simply acting as intermediaries. Third, supporting digital capacity enhancement. Opportunities to acquire technology to adapt to rapidly changing digital environments should be provided. Fourth, establishing career development paths. Paths and support for transitioning from short-term jobs to better occupations are needed. Fifth, building a competency certification system. A system that officially recognizes platform labor experience and skills would be helpful.

✅ Policy and Regulatory Directions

• New regulatory frameworks tailored to the platform economy are needed. Existing labor laws and regulations are premised on traditional employment relationships and don't sufficiently reflect the characteristics of platform labor. Accordingly, discussions on new regulatory frameworks are underway: First, introducing a "third employment status." Consideration is being given to creating a new legal status between traditional employees and self-employed that reflects the characteristics of platform workers. Second, defining platform company responsibilities. Regulations are needed to ensure platforms take certain responsibilities as entities involved in the labor process, not just as simple intermediaries. Third, algorithmic regulation. Regulations ensuring transparency and fairness of algorithms that determine task allocation, evaluation, and account suspension are required. Fourth, ensuring data portability and rights. Workers' rights to transfer their reputation and data to other platforms should be guaranteed. Fifth, promoting fair competition among platforms. Prevention of labor condition deterioration due to market monopolization by a few large platforms is necessary.

• Participation of various stakeholders and social dialogue are important. Platform labor policies need to gather opinions from various stakeholders and take a balanced approach: First, forming consultative bodies with participation from all stakeholders including workers, platform companies, consumers, and government is helpful. Second, continuous fact-finding and research are necessary. Regular surveys are important to accurately understand the rapidly changing platform labor market. Third, pilot projects and phased approaches are useful. When introducing new policies, a phased approach that verifies effects through pilot projects and gradually expands is desirable. Fourth, international cooperation and exchange are needed. Considering the influence of global platform companies, regulatory harmonization and cooperation at the international level are important. Fifth, local-based solutions should also be considered. Customized policy approaches reflecting regional characteristics and industrial structures can be effective.

4️⃣ Related Terms Explained

🔎 Gig Economy

• The gig economy refers to economic activities centered around short-term and temporary jobs.
• The gig economy refers to an economic system revolving around short-term jobs such as project-based, one-time tasks, or temporary contract work. The term "gig" originally derived from jazz musicians' slang for a single performance. The gig economy has grown rapidly as digital platforms made it easier to connect these short-term jobs. Typical gig workers include delivery riders, designated drivers, freelance designers, and temporary teachers. Characteristics of the gig economy include: first, flexible working hours and locations; second, project-based compensation; third, independent contractual relationships rather than regular employment; and fourth, job connections through digital platforms. While the gig economy offers advantages like work-life balance and side job opportunities, it also has disadvantages such as income instability and lack of social protection. Social discussions about its pros and cons as a new economic system continue.

🔎 Algorithmic Management

• Algorithmic management is a system where artificial intelligence algorithms supervise and control workers.
• Algorithmic management refers to a management method where artificial intelligence algorithms, rather than human managers, allocate tasks, evaluate performance, and determine compensation for workers. Platform companies use vast data and complex algorithms to pursue efficient workforce deployment and service provision. Major features of algorithmic management include: first, real-time work monitoring and tracking; second, automated task allocation and scheduling; third, data-based performance evaluation; fourth, quality management using user ratings; and fifth, introduction of gamification elements for motivation. While algorithmic management has advantages like efficiency and objectivity, problems such as opaque decision-making processes, excessive labor control, and exclusion of human elements are also pointed out. In particular, the "black box" problem of algorithms – where decision-making processes are not disclosed to workers – is a major subject of criticism.

🔎 Digital Labor Rights

• Digital labor rights refer to the basic rights of workers working on online platforms.
• Digital labor rights refer to basic rights that should be guaranteed to workers in digital environments. While traditional labor rights addressed rights in offline workplaces, digital labor rights define rights in the new work environment of online platforms. Key elements of digital labor rights include: first, the right to algorithmic transparency (the right to know information about how algorithms work and their decision-making processes); second, data access and portability rights (the right to access one's work data and evaluation information and move it to other platforms); third, the right to disconnect (the right to be free from work communications and app notifications after certain hours); fourth, digital freedom of association (the right to communicate and organize with colleagues in online spaces); and fifth, reputation protection rights (the right to protect one's reputation from unfair evaluations). While digital labor rights are not yet fully established legally, they are being discussed as an important concept for protecting workers' rights in the digital age.

5️⃣ Frequently Asked Questions (FAQ)

Q: Are platform workers legally employees or self-employed?

A: Currently, the legal status of platform workers is not clearly defined and is under debate in most countries. Generally, platform companies classify workers as "independent contractors" or "self-employed," but the actual work performance often involves following the company's instructions and control. Key criteria for determining legal status include: first, the degree of work instruction and control; second, whether work tools are provided; third, economic dependence; and fourth, autonomy in determining work hours and methods. Judgments vary by country and court. For example, the UK Supreme Court recognized Uber drivers as "workers" in 2021, and Spain enacted the Rider Law in 2021 recognizing delivery workers as employees. In contrast, some U.S. states recognize independent contractor status. In Korea, there have been rulings recognizing the employee status of some delivery riders and designated drivers, but consistent standards have not yet been established. Recently, discussions about introducing a "third category" or other new legal classifications reflecting the characteristics of platform labor have been active. The legal status of platform workers is an important social issue as it directly relates to various rights such as minimum wage, social insurance application, and collective bargaining rights.

Q: How is the income of platform workers determined?

A: The income determination method for platform workers varies depending on the type of platform and industry. General income determining factors include: first, basic fees or rates. Delivery apps set a basic fee for the basic delivery distance, and designated driving services have a basic fee for the basic distance. Second, additional fees for distance and time. Additional fees are charged when exceeding the basic distance or when service takes longer. Third, difficulty and risk surcharges. Surcharges are applied based on conditions such as bad weather, late-night hours, or congested areas. Fourth, incentives and bonus systems. Many platforms offer additional compensation when completing a certain number of tasks in specific time periods or areas. Fifth, user tips. On some platforms, tips paid directly by service users constitute an important part of income. Sixth, platform fees are deducted from income. Platforms take fees as compensation for intermediary services, often accounting for 10-30% of total revenue. The problem is that this income determination process is often automated by algorithms and their principles are not transparently disclosed. Additionally, platform companies sometimes unilaterally change fees or basic rates, making it difficult to predict stable income.

Q: Can platform companies unilaterally change fees or delivery rates?

A: Legally, it depends on the contract terms and conditions between the platform and workers. Most platform usage contracts include clauses regarding changes to service conditions, giving platform companies the authority to change fees or delivery rates through certain procedures. However, recent judgments based on fair trade laws and terms and conditions regulations have increasingly found excessively unfair contract clauses to be invalid. In particular, when core conditions that significantly impact workers are changed drastically without sufficient prior notification, there is room to judge this as an unfair contract. Some countries have enacted special laws to protect platform workers, stipulating prior notification periods, worker opinion collection procedures, and restrictions on the extent of changes when modifying fees. In Korea, bills to protect platform workers have been recently discussed, and this may impose restrictions on unilateral condition changes by platform companies. From the workers' perspective, methods such as collective response, reporting to the Fair Trade Commission, and securing consumer and public opinion support can be used to respond to unfair condition changes. Ultimately, establishing a fair consultation system between platform companies and workers could be a sustainable solution.