Apple Will Allow Developers to Use Alternative Payment Systems in App Store in South Korea

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Apple will allow developers to offer alternative payment systems in their app to comply with the new local laws in South Korea. The Korea Herald reports that while Apple has not revealed the date when the changes will take effect, it does plan to discuss the matter further with the Korea Communications Commissions (KCC).

While Apple will allow South Korean developers to offer alternative payment systems in their apps but still charge them a commission, albeit at a reduced rate compared to the current 30 percent rate. Google is also doing something similar to meet the local laws.

Below is the statement an Apple spokesperson issued to The Korea Herald:

“We look forward to working with the KCC and our developer community on a solution that benefits our Korean users. 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.”

If Apple or Google don’t comply with the new laws in South Korea, they could be penalized with hefty fines or risk getting their app store banned altogether.

South Korea became the first country in the world last year to pass a bill forcing Google and Apple to allow third-party payment systems in their app stores, despite concerns from the Cupertino company. Apple has since then been pressurized by regulators in other countries as well to open the App Store to third-party payment systems. It has also announced several changes to the store since then following various lawsuits and regulatory pressure, including allowing developers to directly reach out to subscribers and inform them about alternative payment methods.

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