NSP통신

Kim Pil-ho, the president of Quick Service Association(right) and Lee Jang-seop, the vice president(left)

[북경=NSP통신] 권혜경 기자 = Kim Pil-ho, the president of The Whole Quick Service Transportation Business Association ( below Quick Service Association ) said domestic Quick-service market size is about 4 trillion won. This is bigger than domestic courier market size-3.5 trillion won in 2011.

However, he said"Because of present competitive system with coupon, such a largely grown Quick-service market has been at the risk of collapsing of the whole industry."

So this is the third time that NSP is focusing on domestic Quick-service market,
whose competitive coupon system is leading companies to collapse together. This is based on the interview with Kim Pil-ho, the president of Quick Service Association and Lee Jang-seop, the vice president.

◆What is the Quick-service coupon fee

Kim Pil-ho, the president : This is a kind of bonus gift which a quick-service company provides an employee(female) of the client company who asks Quick-service, which began with a box of coffee of some stockings as a token of thanks.

Not long after a client company had been given about 5,000~7,000 won of cash for 10 orders, now it is general to return 30,000 won of cash for 30 orders.

(picture) rewarding coupon of 30,000 won of cash for 30 Quick-service orders

Lee Jang-seop, the vice president: Although it is the most general to return 30,000 won of cash for 30 orders, not few companies are already returning 30,000 won of cash to customers for 28 even 25 orders.

(right) rewarding coupon of 30,000 won for 25 Quick-service orders (left) rewarding coupon of 30,000 won for 28 orders

Because the Quick-service coupon fee has competitively risen by companies which have got into the business late, an earning rate of companies is already at the critical point.

Recently, companies offering 40,000 won for 30 orders and even 30,000 won for 19 orders has appeared, so we can anticipate appearing a company which will offer 50,000 won for 30 orders soon.

(right) rewarding coupon of 40,000 won for 30 Quick-service orders(left) rewarding coupon of 30,000 won for 19 orders

◆ The key to solve the coupon system of market

Kim Pil-ho, the president : According to Freight car transport business law article 11 section 6, if a cargo freight transport operator unfairly returns whole or in part, of an amount of money to his client as an action of giving back, he is imposed fines 50 million.

To establish the order of transportation market through fair business, Back-margin for a client should be strongly restricted because the transport operator who returns some amount of transport fee to his client back can be used as a slush fund sources for a client.

Now that Freight car transport business law article 2 (definition) doesn't include motorcycles in freight car, the Back-margin system which means returning some amount of transport fee to a client back be never restricted under present Freight car transport business law.

That's why it seems no way to stop coupon competition among Quick-service companies through present legal and regulatory means. Only was The Whole Quick Service Transportation Business Association established, and through this transport operators themselves are making self-cleansing effort.


Lee Jang-seop, the vice president: The coupon competition triggered by companies which have got into the business late happens due to no regulations for opening new companies without any entry barrier.

Now anybody who makes a declaration at the tax office can open the quick-service business without any regulation. This makes some employees who were quick-service driver easy to open new quick-service company near the company he has worked for. In this way the number of quick-service companies is rapidly increasing.

These companies which have got into the business late promise to offer a better coupon based on the relationship which is developed with their customers, which help them secure the quick-service transportation volume easily.

Likewise, a number of new quick-service companies are increasing even a day, and those who have got into the business late have brought a drop in quality service and quick-service transportation market returns.

Therefore, in order to avoid collapsing together caused by the decline in quick-service fee and stop competitive coupon system, it is urgent for the Government to enforce registration, which is an entry barrier.


◆ The role of Quick Service Association in solution to coupon system of quick Service market

Kim Pil-ho, the president : The Whole Quick Service Transportation Business Association was established to stop coupon competition among transport companies and get quick service transportation market entered into established logistics market.

It was started on the fifth of January this year, past just 6 months. so, we are yet immature enough compared to newborns in operating and promoting.

However, the Quick-Service Association has been recognized as its representatives by the government agencies such as Ministry of Land, Transport and Maritime Affairs or the Ministry of Employment and Labor with a small budget and costs, and commissioned several business cooperation from them. These can be regarded as some marks of achievement.

Also, we are planing to make a constant effort for Quick-service legislation which is the awaited challenge of the quick-service industry. In addition, we will keep promoting to register Quick Service Association as a corporation of the Ministry of Land, Transport and Maritime Affairs.

Not only registering Quick Service Association as a corporation but also persuading quick-service companies to refrain from competing with the coupons will be our foremost task.

Lee Jang-seop, the vice president: The more growth of quick-service coupon fee, the easier decline in yield of quick-service drivers.

In this situation that an earning rate is already at the critical point because of coupon competition, then the coupon fee must be shouldered by quick-service drivers.

That's why Association will do its best not to shoulder coupon fee from coupon competition by quick-service drivers. And it is expected to be supported by the government.

◆ What we want to ask Quick service providers

Kim Pil-ho, the president : The Whole Quick Service Transportation Business Association was established just 6 months ago, it is like a newborn baby.

Despite this, it is making efforts to public uncomfortable truth of quick service market and to try to find solution with sincerity. Please pay constant attention to its activities.

Plus this, please be aware that quick service market has been larger to the extent to be under ' the scalpel' of the government or other powers unless we change ourselves.

Lee Jang-seop, the vice president: Although we quick service companies have came running, only looking forward to keeping pace with Korea's economic growth until now, the fact that the quick service market size is about 4 trillion urges us to think of ourselves in many aspects.

One of the important thing is the status of the quick service industry. Although we could have grown in rapid speed owing to our role of face to face meeting with customer in cargo transportation system, in fact, this is possible based on quick service drivers' sacrifices.

And it is true that we have overlooked the welfare problems for quick service drivers and poor working environment, only focusing in our growth.

That is why Quick Service Association is try to establish the status of Quick services by getting entered into established logistics markets and to improve poor working environment for quick service drivers, so we ask for active support of Quick-service companies or drivers in spite of our some mistakes.

권혜경 NSP통신 기자, watch12@nspna.com
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