The World's First Korean In-App Payment Regulation... Sanghyuk Han: "A Touchstone for Platform Regulation"

Amendment to the Telecommunications Business Act Passed in the National Assembly Plenary Session on the 31st

Hansanghyuk, Chairman of the Korea Communications Commission, attended the full meeting of the Science, Technology, Information and Broadcasting and Communications Committee held at the National Assembly on July 20, and made remarks regarding the "Google Fair Trade Act" (Amendment to the Telecommunications Business Act). Photo by Yoon Dongju doso7@

[Asia Economy Reporter Cha Min-young] "This will serve as a milestone for the global legislative efforts to regulate platforms such as app markets."

Han Sang-hyuk, Chairman of the Korea Communications Commission, made this statement on the 1st after the amendment to the Telecommunications Business Act, commonly known as the 'Google Gapjil Prevention Act,' passed the National Assembly plenary session the day before.

With similar bills such as the Open App Market Act being proposed in the United States and Europe, Korea has the significance of becoming the first country in the world to regulate the forced use of in-app payments.

Regarding this amendment, Chairman Han Sang-hyuk said, "Korea is the first to clearly define the obligations of app market operators by law, increasing predictability for those subject to the law." He added, "It is significant in that it resolves unfair infringement issues on app developers and users, while contributing to the creation of a fair and open mobile ecosystem."

He continued, "Considering the urgency and necessity of enforcing this law, it was prepared through consultations with related ministries, and we will strive to prevent regulatory blind spots by cooperating with relevant ministries during the law enforcement process." He also stated plans to coordinate with the Fair Trade Commission and others to monitor the market for related app markets.

Previously, as the platform economy activated and non-face-to-face activities increased due to COVID-19, the influence of app markets on citizens' lives grew, continuously raising the need to protect the rights and interests of app developers and users.

In particular, app market operators such as Google and Apple faced criticism for forcing in-app payments (a payment method using the app market's own developed payment system) on mobile content developers. It was predicted that Google's forced in-app payment policy would lead to a 2 trillion KRW annual decrease in content sales domestically. Since July last year, a year ago, multiple related bills have been proposed to the National Assembly's Science, Technology, Information and Broadcasting and Communications Committee.

Meanwhile, the amendment to the Telecommunications Business Act will be forwarded to the government, undergo a Cabinet meeting resolution within 15 days, and then be promulgated and enforced.

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