Apple allows third-party app payment systems in Korea

Apple is now permitting South Korean app developers to integrate third-party payment systems instead of using Apple’s in-app system following a new law. This change only applies to the South Korean App Store, but it may indicate future compliance with regulatory demands. Google followed a similar path in 2021 after the same law’s restrictions. Apple will charge a 26% commission on monthly sales and developers must handle transaction matters like refunds and subscriptions independently. This action coincides with ongoing discussions around the Digital Markets Act.

Apple announced that developers whose apps are exclusively distributed in South Korea would be able to allow third-party payment systems instead of Apple’s own in-app system. Apple took this step after the mandate of the Telecommunications Business Act in South Korea. The company requires the developer to report their monthly sales and charges a commission of 26% of those sales. Apple warned that developers would have to be responsible for transaction issues such as refunds, purchase history, subscription management, etc. Although the current change is only available for the South Korean App Store, it might signal that the company would comply with future regulatory requirements. Allowing third-party payment systems is a contentious issue under the Digital Markets Act (DMA).

Google was also limited by the same law and has allowed third-party payment systems since 2021.

Sources: Apple, CNBC