Apple will allow third-party payments for apps in South Korea

Deepak Gupta
Deepak Gupta January 11, 2022
Updated 2022/01/11 at 12:29 PM

Apple will soon allow developers to use alternative payment systems for their apps in South Korea to comply with the country’s new law. According The Herald of Korea, the tech giant delivered its plans on how its app store would support third-party payments to the Korea Communications Commission. He reportedly didn’t include details on when the changes to his store will take effect and exactly how much he’ll charge for his service fees. However, the company said its cut for alternative payment transactions will be less than 30%.

South Korea passed a law — dubbed the “anti-Google law” — last year that requires major app stores such as Google and Apple to allow third-party payment methods. It was a blow to the tech giants who normally keep a tight grip on their app stores. Both are even facing lawsuits contesting the commission they receive from developers. Its most important legal battle is perhaps that of Epic, which began after the video game developer tried to circumvent the companies’ 30% commission by offering discounts to users who buy in-game currency directly from its portal.

The new Korean law states that companies will face fines if they refuse to comply and force developers to only use their payment systems. Google unveiled its initial compliance plans shortly after the law took effect in September, revealing that it will cut its commission by four percent for transactions that don’t use its own payment system. As for Apple, we’ll likely hear more information in the coming months. A spokesperson said in a statement:

“We look forward to working with KCC and our developer community on a solution that will benefit our Korean users. Apple has great respect for Korean laws and a strong track record of collaborating with the country’s talented app developers. Our work will always be guided by keeping the App Store a safe and reliable place for our users to download the apps they love.”

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