Apple to Allow Alternative Payment Systems in App Store in South Korea

Apple will let App Store developers offer alternative payment systems in South Korea after the country passed a law that bans app store operators from requiring developers to use their own in-app purchase systems, reports The Korea Herald.

General App Store South Korea Feature Feature
Apple still plans to charge a reduced fee on purchases made through alternative payment systems, according to plans the company submitted to the Korea Communications Commission. Apple did not indicate when the new policy will take effect or what its commission structure will be for alternative payments, the report said.

"We look forward to working with the KCC and our developer community on a solution that benefits our Korean users," Apple said in a statement shared with The Korea Herald. "Apple has a great deal of respect for Korea's laws and a strong history of collaboration with the country's talented app developers. Our work will always be guided by keeping the App Store a safe and trusted place for our users to download the apps they love."

In November, Google announced it would also let developers offer alternative in-app billing systems in its Play Store in South Korea, and said it would reduce its fee for alternative payment systems by four percentage points. For the "vast majority" of developers, Google said its fee would drop from 15% for transactions through Google Play's billing system to 11% for transactions through an alternate billing system.

Top Rated Comments

dguisinger Avatar
25 weeks ago
I'll say it again

In-app purchases of stuff you are not a man-in-the-middle distributor of, and you aren't doing the payment processing anymore. What entitles you to ANY money?

Walmart only gets the initial magazine purchase, not a cut of the subscription made from the included postcard.
Target only gets the initial iPhone sale, not a part of your app purchases or your Apple Fitness subscription fees.

Why should digital be any different? Its still a mob shakedown. Nice app you've got there, it would be a real shame if something happened to it.
Score: 20 Votes (Like | Disagree)
huge_apple_fangirl Avatar
25 weeks ago
Oh wow.
First cracks starting to appear in the garden walls. Only a matter of time before the EU follows suit.
Score: 11 Votes (Like | Disagree)
kuwxman Avatar
25 weeks ago
?

Won't happen here in the US anytime though. Apple pays Congress too well.
Score: 10 Votes (Like | Disagree)
senttoschool Avatar
25 weeks ago

How will this work? Apple and Google aren't processing the payments so how would they know how their reduced cut should be? Do developers have to report their third-party payments to Apple and Google's version of the IRS? Or are they both still acting as a middle-man between the consumer and third-party payment system?
Auditing.

It'll cost Apple resources to do auditing of apps. And it'll be more costly for developers to use an alternative payment because they have to spend resources to keep track of how much they earn and pay Apple by check or bank deposit.

If my app is making decent money, I'd never cheat Apple out of the commission because they can take my app offline anytime. That's way too risky.

If I'm an iOS developer, I'd never use a 3rd party payment system for this reason alone. Too much hassle.

Basically, allowing 3rd party payment systems don't help developer save money. The only things that would help are side loading, alternative app stores, or laws governing commission fees for app stores.
Score: 10 Votes (Like | Disagree)
mrochester Avatar
25 weeks ago

I'll say it again

In-app purchases of stuff you are not a man-in-the-middle distributor of, and you aren't doing the payment processing anymore. What entitles you to ANY money?

Walmart only gets the initial magazine purchase, not a cut of the subscription made from the included postcard.
Target only gets the initial iPhone sale, not a part of your app purchases or your Apple Fitness subscription fees.

Why should digital be any different? Its still a mob shakedown. Nice app you've got there, it would be a real shame if something happened to it.
Walmart makes a profit selling the magazine.

When someone downloads a free app and purchases in-app subscription, Apple has made no profit unless they charge a commission for the in-app purchase.
Score: 7 Votes (Like | Disagree)
Ritmo Avatar
25 weeks ago

Walmart makes a profit selling the magazine.

When someone downloads a free app and purchases in-app subscription, Apple has made no profit unless they charge a commission for the in-app purchase.
Apple makes profit selling the devices and its own services. They could also improve the in-app payments so that developers would choose them over the alternatives.
Score: 6 Votes (Like | Disagree)

Related Stories

iOS App Store General Feature JoeBlue

Apple to Collect 27% Commission on Third-Party App Payment Systems in the Netherlands

Friday February 4, 2022 3:16 am PST by
Apple says it will take 27% commission on purchases made in dating apps through third-party payment options in the Netherlands, in compliance with a Dutch regulatory ruling. In an update on its developer support site, Apple said it would collect 27% commission instead of its usual 30% on transactions made in dating apps that use alternative payment methods. Apple says the decreased...
iOS App Store General Feature JoeBlue

Illinois Floats Bill That Would Let Developers Skirt Apple's In-App Purchase Rules

Wednesday January 19, 2022 4:09 pm PST by
Illinois is the latest state to attempt to pass legislation that would prevent developers from being required to use Apple's in-app purchase options by allowing for alternate payment solutions within apps. As outlined by Illinois news site WGEM, under the Freedom to Describe Directly Act, distribution platforms like the App Store and Google Play would not be able to force Illinois developers ...
google play alternative billing

Google Play Will Let Developers Use Alternative Billing Systems in South Korea, While Apple Has Yet to Make Changes

Thursday November 4, 2021 8:57 am PDT by
The South Korean government recently passed a law that bans Apple and Google from requiring developers to use their in-app purchase systems in the App Store and Google Play respectively, and Google has now announced changes to comply with the law. In a blog post, Google said it will be giving developers the option to add an alternative in-app billing system alongside the Play Store's billing ...
iOS App Store General Feature JoeBlue

Upcoming EU Sideloading Bill Would 'Cripple the Privacy and Security Protections' iPhone Users Expect, Says Apple

Thursday March 17, 2022 10:38 am PDT by
The European Union is set to introduce new legislation as soon as this month that would significantly affect how the App Store operates in Europe, reports The Wall Street Journal. The Digital Markets Act has been in development for some time and the finalized version that could be completed as soon as this month will allow for sideloading and alternate app store options. Apple will be...
iOS App Store General Feature JoeBlue

Apple Fined Another 5 Million Euros by Dutch Competition Regulator Over Dating App Payment Requirements

Monday February 7, 2022 8:49 am PST by
The Netherlands' Authority for Consumers and Markets (ACM) has fined Apple five million euros for a third consecutive week for allegedly failing to satisfy the requirements it set regarding alternative payment systems for dating apps, according to Reuters. The ACM today said it has still not received enough information from Apple to assess whether Apple has properly complied with the order,...
General App Store South Korea Feature Feature

South Korea Passes Bill Banning Apple From Requiring Developers to Use App Store In-App Purchase System

Tuesday August 31, 2021 3:12 am PDT by
South Korea today passed a bill that bans Apple and Google from requiring developers to use their own respective in-app purchasing systems, allowing developers to charge users using third-party payment methods, The Wall Street Journal reports. The bill was originally supposed to be voted on yesterday, however, more urgent matters presented to South Korea's National Assembly meant the bill...
Mac App Store General Feature

Apple and Google Given Mid-October Deadline in South Korea for Filing Plans to Allow Outside Payment Systems in Apps

Wednesday September 29, 2021 7:18 am PDT by
Apple and Google have been asked to provide compliance plans for a newly amended law in South Korea that bars both tech giants from forcing developers to using their in-app purchase payment system for their respective app distribution platforms, Reuters reports. In August, South Korea passed an amendment to an existing law that bans Apple and Google from mandating developers to use their own ...
paddle in app purchase

Paddle Plans to Launch Alternative In-App Purchase System on iOS That Circumvents Apple's Fees

Thursday October 7, 2021 1:00 am PDT by
In response to the Epic Games vs. Apple ruling last month, payments platform Paddle today announced that it plans to launch an alternative in-app payment system for iOS that replaces Apple's in-app purchase mechanism. In an emailed press release, Paddle described its payment system as a "true like-for-like, drop-in replacement" for Apple's in-app purchase mechanism, allowing developers to...

Popular Stories

airpods pro 2 1

AirPods Pro 2 No Longer Expected to Feature Built-In Heart Rate or Body Temperature Sensor

Sunday July 3, 2022 8:07 pm PDT by
While past rumors have indicated the upcoming second-generation AirPods Pro will feature a built-in heart rate and body temperature sensor, Bloomberg's Mark Gurman has cast doubt on those rumors turning out to be true, saying instead such a feature is unlikely to come anytime soon. "Over the past few months, there have been rumors about this year's model gaining the ability to determine a...
top stories 2jul2022

Top Stories: M2 MacBook Air Release Date, New HomePod Rumor, and More

Saturday July 2, 2022 6:00 am PDT by
The M2 MacBook Pro has started making its way into customers' hands and we're learning more about how it performs in a variety of situations, but all eyes are really on the upcoming M2 MacBook Air which has seen a complete redesign and should be arriving in a couple of weeks. Other top stories this week included a host of product rumors including additional M2 and even M3 Macs, an updated...
Apple Watch 8 Unreleased Feature Thumb

Apple Watch Series 8 Model Rumored to Feature 5% Larger Display

Monday July 4, 2022 5:50 am PDT by
Apple is working on an Apple Watch Series 8 model with a larger display, according to DSCC's Ross Young and Haitong International Securities's Jeff Pu. In October last year, Young suggested that the Apple Watch Series 8 could come in three display sizes. Now, responding to a query about the rumor on Twitter, Young claims that the additional display size joining the Apple Watch lineup will be ...
intel go pc justin long

Windows Laptop Makers 'Worried' About New MacBook Air Impacting Sales

Tuesday July 5, 2022 6:57 am PDT by
The upcoming launch of Apple's redesigned MacBook Air with the M2 chip has some Windows laptop manufacturers "worried" that sales of Intel-based laptops will be negatively affected, according to industry sources cited by DigiTimes. "A Wintel brand vendor pointed out that at a price point of US$1,000-$1,500, the MacBook Air will crowd out other high-end notebooks," the report claims, with...
Apple Watch Series 8 What We Know Feature

Apple Watch Series 8 Might Be Able to Tell If You Have a Fever

Sunday July 3, 2022 6:36 am PDT by
The upcoming Apple Watch Series 8 will be able to tell a wearer if it believes they have a fever due to a higher than normal body temperature thanks to a new built-in sensor, according to Bloomberg's reliable Mark Gurman. Writing in the latest edition of his Power On newsletter, Gurman says that the Apple Watch Series 8 will feature a new body temperature sensor, given that the sensor passes ...
macbook air m2

Exclusive: Apple Plans to Launch MacBook Air With M2 Chip on July 15

Wednesday June 29, 2022 5:23 pm PDT by
The redesigned MacBook Air with the all-new M2 Apple silicon chip will be available for customers starting Friday, July 15, MacRumors has learned from a retail source. The new MacBook Air was announced and previewed during WWDC earlier this month, with Apple stating availability will begin in July. The MacBook Air features a redesigned body that is thinner and lighter than the previous...
European Commisssion

EU Approves Landmark Legislation to Regulate Apple and Other Big Tech Firms

Tuesday July 5, 2022 5:53 am PDT by
European Union lawmakers have approved landmark legislation to heavily regulate Apple, Google, Meta, and other big tech firms. The Digital Markets Act (DMA) and Digital Services Act (DSA) were proposed by the European Commission in December 2020. Now, collected in a "Digital Services Package," the legislation has been formally adopted by the European Parliament and seeks to address...