South Korea’s app payment case has moved from proposed penalties to enforceable sanctions. The Korea Media and Communications Commission said on Oct. 28 that Google and Apple violated the Telecommunications Business Act and imposed KRW 42.9 billion on Google and KRW 20.81 billion on Apple. The KMCC said this is the first enforcement case under South Korea’s 2021 app-market amendments.
The KMCC said both companies allowed only their own in-app payment systems and developer-provided third-party payment systems, while barring other methods such as external payments. It said both companies charged a 26 percent commission on third-party payments and withheld some features available through their own systems, including subscription management.
The regulator also pointed to specific conditions that made the alternatives less workable. Google restricted how prices could be displayed by payment method, while Apple required separate app submissions for apps using third-party payment. The KMCC said those conditions effectively forced developers back to the companies’ own in-app payment systems.
The commission also found that app reviews had been delayed without specific reasons or clear timelines. In Apple’s case, the KMCC found a separate commission issue: from July 2015 to January 2023, Apple applied its 30 percent commission for overseas developers to the supply price excluding value-added tax, while applying the same rate for domestic developers to the final consumer price. The regulator said that amounted to unfair discrimination against domestic developers.
The ruling is about practical choice, not labels
South Korea did not only ask whether a third-party option existed. It looked at whether developers could use that option without losing functions, taking on extra review friction or paying fees that made the alternative commercially weak.
Apple’s own developer support rules for South Korea show why that distinction matters. Apple says eligible developers can use the StoreKit External Purchase Entitlement for apps distributed solely in South Korea, but its support page also says developers must submit a separate South Korea-only app binary and pay Apple a 26 percent commission on qualifying third-party transactions.
Google has also announced wider billing changes. In March, Google said developers would be able to use their own billing systems alongside Google Play billing or guide users outside the app to their own websites, with South Korea’s rollout scheduled for Dec. 31. The KMCC said it would continue monitoring payment-policy changes as they are implemented in South Korea.
From investigation to binding sanctions
The final decision follows a process that began in 2022 with fact-finding investigations. In October 2023, the former Korea Communications Commission notified Google and Apple of proposed corrective measures and possible surcharges totaling as much as KRW 68 billion, including KRW 47.5 billion for Google and KRW 20.5 billion for Apple.
The final penalty was lower for Google and slightly higher for Apple than the 2023 draft amounts, bringing the combined total to KRW 63.71 billion. The Korea Times reported that the 2023 notice was only a preliminary step, while the Oct. 28 decision made the corrective measures legally binding.
How Google and Apple responded
Apple said it respectfully disagrees with the decision and believes the changes it has made comply with South Korean law, according to The Associated Press and The Korea Herald. Apple also said it is evaluating its legal options.
Google said the decision did not sufficiently reflect its compliance efforts or support for Korean developers, The Korea Herald reported. The company said it would review the written decision before deciding how to respond.
Neither company had confirmed plans to challenge the ruling in court as of The Korea Herald’s Oct. 29 report.
What changes could follow
The corrective orders require revisions to payment-choice policies and app review procedures. The Korea Herald reported that both companies must submit compliance plans within one month after receiving the orders and implement changes within three months, including allowing external payment links and improving review procedures.
For markets outside South Korea, including Canada, the order is not an immediate rule change. It gives regulators, developers and platform operators a recent example of how app-store payment choice can be assessed in practice.
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