South Korea Fines Apple and Google Over App Store Payment Rules
South Korea's media regulator fined Google 42.9 billion won and Apple 20.81 billion won and ordered both to open their app stores to outside payments.
South Korea’s communications regulator has found that both Apple and Google broke the country’s app market rules, and it has hit them with fines and orders to change how their app stores work. Google must pay 42.9 billion won (about $32 million), while Apple faces a penalty of 20.81 billion won (roughly $15.5 million). The regulator, the Korea Media and Communications Commission (KMCC), also wants both companies to accept payments made outside their own systems.
What the regulator found
The decision rests on the Telecommunications Business Act, as amended in 2021. The KMCC says this is the first time it has enforced the part of that law that bans certain behavior by app market operators. According to the regulator, it has been investigating and inspecting the two companies since 2022. It reported three main problems:
- Forced payment methods. Developers could technically offer other payment services inside their apps, but the companies charged a 26% commission on them and added restrictions. Rules against linking to outside payment options narrowed the choices further. The regulator said this effectively pushed developers toward Apple’s and Google’s own billing systems.
- Slow app reviews. Some reviews were held up without a clear reason, and the companies did not properly answer individual questions about the delays or when reviews would resume.
- Unequal commissions at Apple. Between July 2015 and January 2023, Apple calculated its 30% cut differently depending on where a developer was based. Korean developers were charged on prices that included value-added tax (VAT), while overseas developers were charged on prices without it. That meant Korean developers paid more.
The commission issue applied only to Apple. The payment and review findings covered both companies.
What the companies must change
Beyond the fines, the KMCC issued corrective orders. Both companies have to revise their policies so that developers can use external payment methods, and they must rework their app review procedures. Apple also has to take steps to stop what the regulator called discrimination between domestic and overseas developers from happening again.
Apple has said it disagrees with the decision. It told reporters it is weighing its options under South Korean law, and it says its policies comply with that law and that its payment system helps protect customers from fraud. Google’s response was not included in the reports we reviewed.
Why it matters for readers
If you use an iPhone or Android phone in South Korea, the practical effect could be more ways to pay for apps and subscriptions, and possibly different prices if developers choose to pass on savings from lower commissions. That is not guaranteed. The orders require the companies to allow outside payments, but the sources do not say how developers will respond or whether prices will change.
For readers elsewhere, the case is part of a wider pattern. Apple and Google already allow external payments in the United States and in the European Union. Reports also point to similar regulatory pressure in Brazil and Japan, where Apple has introduced alternative app distribution and payment options. In the EU, Apple recently overhauled its App Store fees and business terms after concerns raised by the European Commission.
One point to keep in mind if outside payments do arrive on your phone: paying through a developer’s own checkout means you are dealing with that company’s billing, not Apple’s or Google’s. Apple argues its system offers fraud protection, so it is worth checking how refunds and subscription cancellation work before you switch.
What happens next
It is not yet clear when the changes will take effect or what the new payment rules will look like in practice. Apple has not said whether it will challenge the decision, only that it is evaluating its options. The sources also do not say how or when the fines must be paid. Watch for announcements from both companies about updated developer terms in South Korea, since those will show how much, if anything, changes for app users there.
