Apple will likely face sanctions from the Korean Fair Trade Commission for unfair iPhone contracts that require local carriers to pay advertising and repair costs, reports The Korea Herald, citing industry sources.

Apple's Korean division has been criticized for asking carriers to foot the bill for advertising costs, launch events, and iPhone repairs, leading to an investigation from the Fair Trade Commission. The Korean FTC recently agreed to impose penalties on Apple Korea and has contacted the company for an explanation before making a final decision on whether or not to impose sanctions.

iphone x quad
According to The Korea Herald, three Korean carriers, SKT, KT, and LG Uplus, were directed by Apple to air TV commercials promoting the iPhone 8 and the iPhone X, but were reportedly required to pay for the commercials.

"When you see iPhone's TV commercials here, everything is the same except for a telecom operator's logo at the end of the commercials. Still, telecom firms should bear all the costs standing at billions of won," said an executive of one of the three firms on the condition of anonymity.

Apple Korea has been under investigation in Korea since 2016, with the Korean Federal Trade Commission conducting raids in June 2016 and November 2017. It's not clear what kind of fines the company could be facing in the country should the FTC move forward with sanctions.

Top Rated Comments

kdarling Avatar
99 months ago
South Korea? The home of Samsung? The country with the corrupt government? The country that is run by Samsung?

Who woulda thunk it?
:D

Says a guy with California in his signature, home of the few court wins Apple managed to get with patents that were quickly invalidated in other countries.

Accusations of hometown prejudice can be made all over the world.
Score: 6 Votes (Like | Disagree)
macfacts Avatar
99 months ago
So if you want to advertise your local franchise, the franchisee pays for their own advertising? That's pretty standard.

Or will car dealers start asking the manufacturer to pay for their advertising too?
Those local carriers want to advertise their services and phones they offer. Apple's contracts force them to make (edit: not make, show) "iPhone only commercials" and cover the cost.

What bizaroo world do you live in where that sounds reasonable.
Score: 5 Votes (Like | Disagree)
alphaod Avatar
99 months ago
So if you want to advertise your local franchise, the franchisee pays for their own advertising? That's pretty standard.

Or will car dealers start asking the manufacturer to pay for their advertising too?
Score: 3 Votes (Like | Disagree)
TheColtr Avatar
99 months ago
South Korea? The home of Samsung? The country with the corrupt government? The country that is run by Samsung?

Who woulda thunk it?
Score: 3 Votes (Like | Disagree)
Mousse Avatar
99 months ago
I see nothing wrong with having the carrier pay for advertising and events, but making them pay for phone repair?
Score: 2 Votes (Like | Disagree)
kdarling Avatar
99 months ago
Please. What he said is true. Samsung has had not one, but two CEOs sentenced to prison. Along with dozens of other executives over the years.
That's a good thing, as it shows that South Korea is going through a dismantling of old ways. Paying a friend of a friend to help you with government red tape is common all over the planet. In the US we still do it, but semi-hide it by hiring people into civilian lucrative jobs afterwards.

In any case, it has zero to do with Apple and its carrier contracts.

Can you name any Apple CEOs or executives that have gone to prison (and then released much earlier than they should have)?
That might just show that the US still protects Apple execs even more than Korea used to protect Samsung execs.

Some think Jobs should've gotten jail time for his stock scandal, same as other less fortunate execs of smaller companies. Others think he should've gone to trial for his secretive anti-poaching and other anti-trust plots.

But, just like used to happen with Samsung execs, Jobs was deemed too valuable to charge with anything. There's very little difference in the types of influence going on in both cases. Well, except Samsung actually is critical to South Korea's economy and defense, unlike Apple.
Score: 1 Votes (Like | Disagree)

Popular Stories

AirPods Pro Firmware Feature

Apple Releases New Firmware for AirPods Pro 2, AirPods Pro 3, and AirPods 4

Thursday November 13, 2025 11:35 am PST by
Apple today released new firmware designed for the AirPods Pro 3, the AirPods 4, and the prior-generation AirPods Pro 2. The AirPods Pro 3 firmware is 8B25, while the AirPods Pro 2 and AirPods 4 firmware is 8B21, all up from the prior 8A358 firmware released in October. There's no word on what's include in the updated firmware, but the AirPods Pro 2, AirPods 4 with ANC, and AirPods Pro 3...
CarPlay Pinned Messages

iOS 26.2 Adds New CarPlay Setting

Thursday November 13, 2025 6:48 am PST by
iOS 26 extended pinned conversations in the Messages app to CarPlay, for quick access to your most frequent chats. However, some drivers may prefer the classic view with a list of individual conversations only, and Apple now lets users choose. Apple released the second beta of iOS 26.2 this week, and it introduces a new CarPlay setting for turning off pinned conversations in the Messages...
iPhone Pocket Short

iPhone Pocket Now Available to Order, But Already Selling Out

Friday November 14, 2025 6:20 am PST by
Apple recently teamed up with Japanese fashion brand ISSEY MIYAKE to create the iPhone Pocket, a limited-edition knitted accessory designed to carry an iPhone. iPhone Pocket is available to order on Apple's online store starting today, in the United States, France, China, Italy, Japan, Singapore, South Korea, and the United Kingdom. However, it is already completely sold out in the United...
tvOS 26 Profiles

tvOS 26.2 Adds a Useful New Feature to Your Apple TV

Friday November 14, 2025 10:02 am PST by
Starting with the upcoming tvOS 26.2 update, currently in beta, additional profiles created on the Apple TV no longer require their own Apple Account. In the Settings app on the Apple TV, under Profiles and Accounts, anyone can create a new profile by simply entering a name and indicating whether the profile is for a kid. The profile will be associated with the primary user's Apple Account,...
Tim Cook WWDC 2018

Report: Tim Cook to Step Down as Apple CEO 'as Soon as Next Year'

Saturday November 15, 2025 2:40 pm PST by
Apple is preparing for Tim Cook to step down as CEO of the company "as soon as next year," according to the Financial Times. The company's board of directors and senior executives "recently intensified preparations for Cook to hand over the reins," the report said. While the report said that Apple is unlikely to name a new CEO before its next earnings report in late January, it went on to ...
apple silicon mac lineup 2024 feature purple m5

Apple's 2026 Mac Plans

Friday November 14, 2025 3:23 pm PST by
Most of Apple's Macs are slated to get M5 chips across 2026, and there's a possibility we'll even see the first M6 chips toward the end of the year. Updates are planned for everything from the MacBook Air to the Mac Studio. MacBook Air (Early 2026) The MacBook Air will be one of the first Macs to get a 2026 refresh, with an update planned for the first few months of the year. The MacBook...
walmart new ornametns

Walmart Black Friday Deals Begin Today With Low Prices on Headphones, TVs, and More

Friday November 14, 2025 7:55 am PST by
Walmart's Black Friday sale has officially kicked off today, with an online shopping event that's also seeing some matching deals in retail locations. There are quite a few major discounts in this sale, including savings on headphones, TVs, and more. Note: MacRumors is an affiliate partner with Walmart. When you click a link and make a purchase, we may receive a small payment, which helps us...
iOS 26

iOS 26.2 Available Next Month With These 8 New Features

Tuesday November 11, 2025 9:48 am PST by
Apple released the first iOS 26.2 beta last week. The upcoming update includes a handful of new features and changes on the iPhone, including a new Liquid Glass slider for the Lock Screen's clock, offline lyrics in Apple Music, and more. In a recent press release, Apple confirmed that iOS 26.2 will be released to all users in December, but it did not provide a specific release date....
best early black friday deals

Best Black Friday Apple Deals Live Now - Save on AirPods, iPads, and Apple Watches

Saturday November 15, 2025 1:45 pm PST by
We're officially in the month of Black Friday, which will take place on Friday, November 28 in 2025. As always, this will be the best time of the year to shop for great deals, including popular Apple products like AirPods, iPad, Apple Watch, and more. In this article, the majority of the discounts will be found on Amazon. Note: MacRumors is an affiliate partner with some of these vendors. When ...
homepod mini thumb feature

New HomePod Mini, Apple TV, and AirTag Were Expected This Year — Where Are They?

Wednesday November 12, 2025 11:42 am PST by
While it was rumored that Apple planned to release new versions of the HomePod mini, Apple TV, and AirTag this year, it is no longer clear if that will still happen. Back in January, Bloomberg's Mark Gurman said Apple planned to release new HomePod mini and Apple TV models "toward the end of the year," while he at one point expected a new AirTag to launch "around the middle of 2025." Yet,...