App Store Developers in South Korea Can Now Use Alternative Payment Providers

Apple has informed App Store developers in South Korea that they can now begin offering users alternative payment systems in their apps. The change comes after the country passed a law that bans app store operators from requiring developers to use their own in-app purchase systems.

General App Store South Korea Feature Feature
Apple's developer update on apps distributed in South Korea begins with Apple saying that the ‌App Store‌ was designed "to be a safe and trusted place to discover and download apps," but continues by explaining that the change is simply to ensure that the company is complying with local law:

The Telecommunications Business Act in South Korea was recently amended to mandate that apps distributed by app market operators in South Korea be allowed to offer an alternative payment processing option within their apps. To comply with this law, developers can use the StoreKit External Purchase Entitlement. This entitlement allows apps distributed on the App Store solely in South Korea the ability to provide an alternative in-app payment processing option. Developers who want to continue using Apple's in-app purchase system may do so and no further action is needed.

Apple goes on to caution developers that using the entitlement will cause some ‌App Store‌ features like Ask to Buy and Family Sharing to be unavailable to their users. The reason for this, Apple explains, is because payments that take place outside of the ‌App Store‌'s own payment system cannot be validated. As such:

"Apple will not be able to assist users with refunds, purchase history, subscription management, and other issues encountered when purchasing digital goods and services through an alternative purchasing method."

Apple provides developers with a list of pre-approved payment service providers (PCPs) in South Korea that includes KCP, Incise, Toss, and NICE. Developers can still use a different PSP, but it must meet the same criteria of having a secure payment processing system and an established track record of protecting user privacy. Notably, Apple will earn a 26% commission on all processed sales, despite the Korean regulator's misgivings about commissions taken on third-party payment systems.

Developers interested in using the StoreKit External Purchase Entitlement for apps in South Korea can get started by submitting an entitlement request form.

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Top Rated Comments

The_Gream Avatar
25 months ago
So many people don’t understand business. They seem to live in an oblivious utopia to how things really work.

“But we pay a yearly developer fee”

That fee is like buying a Sam’s Club or Costco Membership. All it does it get you in the door. You can’t just walk through those stores fill up your carts and walk out with everything for free. You still have to pay for the products/services rendered.

Apple has a right to do business the way they want within the guidelines of the law.

“Oh but Apple wouldn’t be anything with out the developer”

Yeah, but those developers wouldn’t be anything with out the system Apple created and paid for. The street goes both ways, but someone had to pay for it. Apple has a right, just like any other business, to turn a profit.

Is there room for improvement? Yes.
If you don’t like something, don’t support it.
Score: 20 Votes (Like | Disagree)
no_idea Avatar
25 months ago

For doing precisely nothing. This is monopolist behaviour that needs to be stopped.
Lol…sure, how about you go procure your own hardware, networking, service providers, storage, SRE’s, marketing team, and host the apps yourself.
Score: 17 Votes (Like | Disagree)
glindon Avatar
25 months ago

For doing precisely nothing. This is monopolist behaviour that needs to be stopped.
Free development software and access to the highest per user spending store does not (and will never) come free.
Score: 16 Votes (Like | Disagree)
wanha Avatar
25 months ago

For doing precisely nothing. This is monopolist behaviour that needs to be stopped.

Do you seriously believe creating and maintaining the developer tools, the OSes, the App Store, app review, hosting, and so on is "nothing"?

Elizabeth Warren, is that you?
Score: 14 Votes (Like | Disagree)
Wildkraut Avatar
25 months ago

So many people don’t understand business. They seem to live in an oblivious utopia to how things really work.

“But we pay a yearly developer fee”

That fee is like buying a Sam’s Club or Costco Membership. All it does it get you in the door. You can’t just walk through those stores fill up your carts and walk out with everything for free. You still have to pay for the products/services rendered.

Apple has a right to do business the way they want within the guidelines of the law.

“Oh but Apple wouldn’t be anything with out the developer”

Yeah, but those developers wouldn’t be anything with out the system Apple created and paid for. The street goes both ways, but someone had to pay for it. Apple has a right, just like any other business, to turn a profit.

Is there room for improvement? Yes.
If you don’t like something, don’t support it.
Exactly and that’s why laws are being rewritten worldwide, to catch up newer shady anticompetitive practices, simply as that.

LOL developers wouldn’t be anything without Apple. LOL² that was a good one!
You’re talking about it as if Apple invented the software development industry. ?

I would rather say Apple wouldn’t be anything without the developers, because most of their crap are built on stuff which existed already, from core libraries to kernels to drivers and core development tools parts and CPU architecture(ARM).

Even their crapy anticompetitive AppStore runs on Java.

Apple is a good puzzler, that’s it.
And since Steve Jobs passed away, they released just crap.
Score: 9 Votes (Like | Disagree)
contacos Avatar
25 months ago
Why even bother with additional integration troubles as a developer if Apple still takes 26% commission?

Just as inconvenient as Apples „Right to repair“ process.

Sounds nice on paper but
Score: 8 Votes (Like | Disagree)