Apple Allows Third-Party Payments in Korean Apps... Commission Fee Set at 26%

[Asia Economy Reporter Lim Hye-seon] Apple will allow third-party payments for all Korean apps on the 'App Store.' This is the first time Apple has permitted third-party payments for all apps in a single country.

On the 30th, Apple announced on its official website that it will allow third-party payments for Korean media content apps to comply with the revised Telecommunications Business Act (commonly known as the 'In-App Payment Mandatory Prohibition Act'). Apple explained that developers can use the external purchase entitlement (StoreKit External Purchase Entitlement), which provides an alternative in-app payment processing option for apps distributed only in South Korea on the App Store.

However, Apple stated that if this entitlement is used, payments made outside the App Store's secure payment system cannot be verified, so some App Store features such as purchase requests and Family Sharing will not be available to users.

Apple added that it cannot support users regarding refunds, purchase history, subscription management, or other issues arising from purchasing digital goods and services through alternative payment methods, and that the responsibility for such support lies with the developers.

Apple required app developers to prioritize selecting one of four certified domestic electronic payment gateway providers (PG) for third-party payments: KCP, Inicis, Toss, or NICE.

Additionally, Apple set the commission rate for third-party payments at 26%, which is 4 percentage points lower than its own in-app payment commission (up to 30%). Besides the stated 26% commission, additional fees such as card company fees apply to third-party payment methods. This approach is similar to the method Google introduced to circumvent domestic laws.

The difference from Google is that app developers can choose to offer either Apple in-app payments or third-party in-app payment methods within the app, but not both. Google provides both Play Store in-app payments and third-party in-app payment methods simultaneously.