Google "Invests in Ecosystem for Developers and Consumers through Fees" (Comprehensive)

"Digital Content In-App Payment Fee Raised to 30%"
Operation of 115 Billion Won Scale K-Content Activation Program

Funima Kochika Google Play Global App Business Development Head

[Asia Economy Reporter Jin-gyu Lee] Google announced regarding the mandatory 'In-App Payment (IAP)' decision that it will "invest in developing Google Play into an ecosystem where developers and consumers can trust and use it." Google also decided to operate a program worth 115 billion KRW (100 million USD) to promote the development of the Korean digital content (K-content) ecosystem.

"Investing in an ecosystem for developers and consumers through commissions"

Purnima Kochikar, Head of Global App Business Development at Google Play, stated at a media briefing on the 29th, "Google will invest commissions to develop Google Play as an ecosystem that enables developers to utilize new tools and consumers to use a safe and trustworthy platform."

Kochikar explained, "We plan to raise the in-app payment commission for digital content to 30%. Existing applications will have a grace period until September 30, 2021, and new apps until January 20, 2021."

She emphasized, "Through the commissions, we will provide developers with new tools and offer consumers a safe and reliable platform experience."

Furthermore, she said, "Android values openness and provides services that allow various companies to expand globally," adding, "Companies can deliver apps and content to 2 billion users in over 190 countries." She continued, "Through the Google Play payment system, consumers can easily obtain detailed payment information," and added, "We also provide security systems such as password authentication and support services related to payments and refunds."

She also mentioned, "We will gather feedback from developers regarding the in-app payment commissions in the future," and said, "We will offer discounts to users through the commissions and support content developers with education, marketing, and global expansion." She evaluated, "Google Play will be a stepping stone for Korean companies to go global, thanks to Google Play having a universal payment system."

With Google's decision to mandate in-app payments, a 30% commission will be applied to all payment amounts for applications and content sold on Google Play. In-app payment is Google's proprietary internal payment system, where Google charges a 30% transaction fee on the payment amount when Google Play vendors use it. Initially applied only to game apps, in-app payments will now be expanded to content apps such as music, videos, webtoons, audiobooks, and e-books following Google's recent decision.

Operating a 115 billion KRW K-content activation program

Meanwhile, Google announced that it will operate the 'K-reate' program worth 115 billion KRW over the next year to promote the development of the K-content ecosystem.

Through this program, Google plans to support developers providing digital content services such as webtoons, web novels, music streaming, and e-books, as well as offer benefits including price reductions to users of these services.

Discount benefits for webtoons, web novels, and music streaming, along with Google Play Points accumulation promotions, will be provided. The K-reate program expands beyond developer support programs like the 'Google Play Indie Game Festival' and the 'Changgu Program' to allow users to enjoy tangible benefits as well.

Support for K-developers and K-creators will also be provided simultaneously. In addition to financial support for small and medium-sized domestic web novel, webtoon, and e-book distributors and digital content app developers, consulting for global expansion and global marketing support programs will be offered. Kochikar stated, "Through the K-reate program, we will help K-content app developers grow within the Android ecosystem and spare no effort to connect users with excellent digital content."

This content was produced with the assistance of AI translation services.