Earlier this year, Apple announced that it would comply with a new law in South Korea that required the company to allow third-party payment providers in App Store apps. Starting today, developers can finally apply to use other payment methods besides Apple’s in their apps distributed in South Korea’s App Store.

Background

In August 2021, the South Korean regulator passed an antitrust law to force both Apple and Google to allow developers to use third-party payment methods in their apps distributed through the App Store and Google Play. Unsurprisingly, Apple appealed the decision, but the company ended up agreeing to comply with the law.

However, the South Korean regulator wasn’t yet satisfied with Apple’s proposal since the company would still charge a 26% commission for transactions made outside of the App Store’s in-app purchases system. Even so, it seems that Apple will keep things that way.

Third-party payment providers in South Korea

Apple on Thursday provided more details about how it will let developers offer third-party payment providers in their apps distributed in South Korea.

Similar to what happened in the Netherlands, where Apple created a special entitlement for dating apps that offer alternative payment methods, developers who want to offer an alternative payment processing option in South Korea must use the StoreKit External Purchase Entitlement.

Developers can continue to use Apple’s in-app purchases system if they want, but apps with alternative payment methods need a new version exclusively for the South Korean App Store. Apple also notes that some features like Ask to Buy and Family Sharing won’t be available for these apps. The company will also not take responsibility for any subscription management or refunds.

For every sale made using an alternative payment method, developers will still have to pay a commission to Apple – however, there will be a 4% discount. Apps will have to make it clear that the user will pay through an alternative system that is not supported by Apple.

There are currently four South Korean payment providers qualified by Apple: KCP, Inicis, Toss, and NICE. If the developer wants to use a different payment provider, it needs to be verified by Apple first. Those who want to submit an app to the South Korean App Store with an alternative payment method must fill out a request form on the Apple Developer website.

What’s next for the App Store?

App Store apps can now use third-party payment providers in South Korea.

Ever since Epic Games sued Apple for removing Fortnite from the App Store, the company has been under a lot of pressure around the world when it comes to App Store restrictions.

Judge Yvonne Gonzalez Rogers issued a permanent injunction last year saying that Apple can no longer forbid developers from directing users to third-party payment options. Apple appealed to delay implementation of the changes, but the appeal was denied.

Some antitrust bills also aim to pass legislation that would force Apple to allow app sideloading on iOS, as well as overturn the mandatory use of WebKit. Apple is clearly not happy about this, and so far the company has shown no signs that it will reconsider the App Store guidelines.

FTC: We use income earning auto affiliate links. More.


Check out 9to5Mac on YouTube for more Apple news:

You’re reading 9to5Mac — experts who break news about Apple and its surrounding ecosystem, day after day. Be sure to check out our homepage for all the latest news, and follow 9to5Mac on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our exclusive stories, reviews, how-tos, and subscribe to our YouTube channel

About the Author

Filipe Espósito

Filipe Espósito is a Brazilian tech Journalist who started covering Apple news on iHelp BR with some exclusive scoops — including the reveal of the new Apple Watch Series 5 models in titanium and ceramic. He joined 9to5Mac to share even more tech news around the world.