On October 28, 2026, the Korea Media and Communications Commission resolved to impose fines totaling 63.71 billion won, along with corrective measures, on Google and Apple over violations related to in-app payments. Google was fined 42.9 billion won and Apple 20.81 billion won. It is the first enforcement action under the 2021 amendment to the Telecommunications Business Act, which prohibits forcing specific payment methods and unfairly delaying app reviews.
To understand the case, it helps to separate app payments into three types. The first is the in-store payment system provided by Google or Apple. The second is "third-party payment," in which a developer builds and offers its own payment system inside the app. The third is "external payment," in which users pay on an outside website, for example through a link in the app. The regulator found that the two companies allowed only their own payment systems and third-party payment, banned external payment, and attached conditions that made third-party payment difficult to adopt. The problem was that, although payment options formally existed, the system made it hard for developers to choose freely among them.
A 26% fee on third-party payments, plus feature limits and extra costs that discouraged adoption
Google and Apple charged a 26% fee on third-party payments. But for developers adopting third-party payment, the fee was not the only burden. They also faced separate costs, including development of their own payment systems, payments to payment service providers, and settlement of sales. In addition, some features available with the store operators' own payment systems, such as subscription management, were reportedly unavailable with third-party payments.
In other words, developers had to pay the store operator a 26% fee while also bearing the extra burden of building and running their own payment systems. Switching payment methods therefore did not necessarily bring enough economic benefit. The Korean authorities cited not only these cost issues but also restrictions on price display and on how apps had to be submitted. According to the commission's official announcement of October 28, the main problems were as follows.
| Target | Conditions the regulator found problematic |
|---|---|
| Both companies | Charged a 26% fee on third-party payments and did not provide some features, such as subscription management. Developers also incurred extra costs for payment processing, system development and settlement |
| Restricted price display according to payment method | |
| Apple | Required developers to submit a separate app in order to use third-party payment |
How prices can be displayed, and whether a separate app must be submitted to adopt third-party payment, directly affect developers' operations. Weighing these restrictions and added burdens together, the Korean authorities concluded that the conduct amounted to effectively forcing specific payment methods. Even if third-party payment is formally permitted, unfavorable conditions for adopting it can leave developers with few practical choices.
Note that the 26% figure refers to the fee previously charged on third-party payments. It does not indicate the fee rate that will apply to the external payments now to be allowed, so the two should be kept distinct.
Apple's fee calculation basis and both companies' app review delays also at issue
The regulator also took issue with Apple's use of different fee calculation bases for domestic and foreign developers. The period in question runs from July 2015 to January 2023. According to the commission, Apple applied a 30% fee to the amount excluding value-added tax for overseas developers, but applied the same 30% to the final sale price including VAT for Korean developers. Even with the same rate, a different base amount produces a different actual burden. Because Korean developers were charged on an amount that included tax, they were treated less favorably than overseas developers.
The authorities found this conduct to be a violation and ordered corrections to prevent discrimination between domestic and foreign developers from recurring. However, the period covered ended in January 2023, so the decision alone does not establish that the same calculation method continues today. A past problem with fee calculation should be considered separately from what the current fee structure looks like.
Unreasonable delays in app reviews by both Google and Apple were also found. Specifically, the companies were faulted for not notifying developers of the reasons for delayed reviews and for failing to give clear answers about the reasons or the expected review schedule when asked. The authorities ordered both companies to improve their review procedures, but this does not mean a new uniform deadline, such as a set number of days, has been imposed on all apps. The corrective measures require separate improvements on different issues: restrictions on payment methods, fee calculation, and handling of app reviews.
From a draft of up to 68 billion won in 2023 to a final 63.71 billion won
The fines are not simply the up-to-68-billion-won sanction proposed in 2023 made final. The Korean authorities began a fact-finding investigation on August 16, 2022, and on October 6, 2023 announced a draft fine proposal for Google and Apple. That announcement said the final amounts would be set after hearing the companies' views and going through the commission's deliberation and resolution. The 63.71 billion won is the amount resolved on October 28, 2026 after that process.
Comparing the official announcement of October 6, 2023 with the official announcement of October 28, 2026, the breakdown of the fines changed as follows.
| Announcement date | Procedural stage | Apple | Total | |
|---|---|---|---|---|
| October 6, 2023 | Draft proposal | 47.5 billion won | 20.5 billion won | Up to 68 billion won |
| October 28, 2026 | Resolution | 42.9 billion won | 20.81 billion won | 63.71 billion won |
Google's fine fell from the draft's 47.5 billion won to 42.9 billion won, while Apple's rose from 20.5 billion won to 20.81 billion won. In total, the resolved amount of 63.71 billion won compares with the draft's maximum of 68 billion won. However, the draft and the resolution are different procedural stages, and the reason for the change in amounts has not been confirmed. There is therefore no basis for interpreting the reduction as the result of voluntary improvements or fee cuts by the two companies.
Nor was payment of up to 68 billion won finalized when the 2023 draft was announced. The current fines also do not represent compensation paid directly to developers or refunds of past fees.
External payment links to be allowed, but fees won't necessarily be zero
According to the commission's explanation as reported by Yonhap News, Google and Apple were ordered to provide links that let users move from within an app to an external payment site, and to appropriately adjust the fees charged on third-party payments. However, the commission will not directly regulate whether fees are charged on the newly allowed external payments, or at what rate, leaving that to the companies. In other words, even if steering users to external payment becomes permitted, the fee paid to the store operator will not necessarily be zero. How much the actual burden falls will depend on the fee structure the companies set going forward.
The report says the companies must submit an implementation plan within one month of receiving the corrective order and complete the improvements within three months. The deadlines run from the date the order is received, not uniformly from the October 28 resolution date. The implementation plans submitted and the actual service changes will be key to judging the corrective measures.
Google announced in March 2026 a plan to allow external payments and lower fees, and Apple has also indicated a policy of voluntary improvements. But announcing an improvement plan is different from applying it in the Korean market. According to Yonhap, the commission said Google's March plan had not yet been implemented in Korea and therefore was not reflected in the calculation of the fine. Whether the corrective orders are properly carried out will be judged on the concrete implementation plans and results.
What matters for app developers is how much their total burden actually falls if they change payment methods. They will need to add up the revised store fee together with the costs of payment processing, system development and settlement for comparison. They will also need to check how far features such as subscription management will be available, and whether the restrictions on price display and app submission are removed.
At this point, the new fee rates and operating conditions have not been set, so it is not possible to judge how much developers' burdens will ease or how far consumer prices will be affected. The significance of the decision lies in requiring not just a formal allowance of payment options but conditions that developers can actually use. The focus now shifts to what fee structures and operating rules Google and Apple introduce in Korea, and whether external and third-party payments become realistic options.