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.
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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