Kang Ki-jung, Fair Trade Commission Chairman, "Apple Voluntarily Corrects Unfair Commission Charges"

[Asia Economy Sejong=Reporter Dongwoo Lee] Han Ki-jung, Chairman of the Korea Fair Trade Commission, stated, "By initiating an investigation into Apple's unfair commission charges, we have led Apple to voluntarily correct its practices."

On the 22nd, after visiting NCSoft located in Pangyo, Gyeonggi Province, Chairman Han said at a meeting with app developers held at the Economic Science Promotion Institute, "Apple will now charge commissions to domestic app developers based on the supply price excluding value-added tax (VAT)."

Previously, Apple was accused of overcharging in-app payment commissions in South Korea. Apple charged commissions based on consumer prices including VAT to domestic app developers listed on the domestic app market, while charging commissions based on the supply price excluding VAT to overseas app developers. As a result, Apple was suspected of collecting 340 billion KRW in VAT commissions from developers.

Following this, when the Fair Trade Commission conducted an on-site investigation of Apple Korea and held interviews with executives from Apple's U.S. headquarters, Apple expressed its intention to correct the issue to the commission. Apple announced, "Starting January 2023, we plan to change tax services for developers based in South Korea and conducting business domestically," adding, "Commissions will be calculated excluding VAT from the revenue generated by Korean developers on the domestic App Store." Apple also stated, "Further detailed information will be gradually provided to app developers."

However, Chairman Han added, "We will investigate and review the illegal status that occurred prior to the voluntary correction," and "We will comprehensively examine whether the voluntary correction is implemented and its progress."

On the 7th, when Apple's new iPhone 14 series was officially released in Korea, citizens lined up at the Apple Store in Myeongdong, Jung-gu, Seoul to purchase the product. Photo by Mun Honam munonam@

Meanwhile, the Fair Trade Commission plans to establish a dedicated platform team soon to systematically respond to issues related to online platforms. As a competition authority, it will closely monitor various anti-competitive behaviors in the app market and design tailored systems such as guidelines for reviewing online platform monopolies and oligopolies.

The commission is also expected to soon begin reviewing the case where Google allegedly forced domestic game companies such as Nexon, NCSoft, and Netmarble to release their apps exclusively on its app market, the Play Store, and decide on possible sanctions.

Chairman Han urged, "To establish a fair competitive environment in the app market and improve unfair trade practices, we ask for active cooperation and feedback from app developers," adding, "We will continue to strive to reflect the voices from the field into policy directions through meetings with various stakeholders."

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