[2024 National Audit] Apple Korea CEO Responds to KakaoPay Data Leak Criticism: "Not Involved"

As suspicions arose that Kakao Pay transferred personal credit information of over 40 million people to Alipay for Apple App Store payments, Peter Aldenwood, CEO of Apple Korea, evaded responsibility by stating that it was Alipay's business to handle.

He also explained that the reason why the App Store payment fees differ between the European Union (EU) and Korea is due to the so-called 'Big Tech (large information technology companies) abuse prevention law.' In the EU, while payment fees were lowered, new fees were introduced.

[Image source=Yonhap News]

At the National Assembly's Political Affairs Committee audit on the 24th, in response to Rep. Kim Jae-seop of the People Power Party's question about whether Apple forced Kakao Pay to transfer users' personal information en masse to Alipay, Aldenwood said, "Apple does not get involved in what data Alipay looks at for calculating customer-specific credit scores (NSF scores)," adding, "This is entirely Alipay's authority and their own business."

He further stated, "I cannot speak about the contract or relationship between Kakao Pay and Alipay," and added, "Since an investigation is currently underway, it is difficult to disclose details in a public setting."

Apple had requested Kakao Pay users' personal credit information for the purpose of calculating NSF scores when adopting Kakao Pay as a payment method on the App Store. Accordingly, Kakao Pay transferred users' personal credit information to Apple through Alipay.

Regarding criticism that Apple lowered App Store payment fees in Europe but still takes up to 30% of payment amounts as fees in Korea, Aldenwood explained, "A new law was enacted in Europe that specifies in detail why and for what value fees are charged. To comply with that law, fees were lowered," adding, "In Europe, instead of just lowering fees, a new business model was introduced that charges core technology fees, which do not exist in Korea."

After the EU implemented the Digital Markets Act (DMA) in March, Apple reduced App Store payment fees from the existing 30% to 17%. It has taken measures such as allowing developers to introduce alternative payments and opening up to third-party application (app) markets.

Meanwhile, the Korea Communications Commission announced in October last year that it plans to impose a fine of 20.5 billion won on Apple for its in-app purchase 'abuse.' In response, Aldenwood stated, "Apple complies with laws in all countries where it operates, including Korea," and added, "We fully comply with Korean domestic laws and pay all fines that are legally required."

Aldenwood had been summoned as a witness twice before at the National Assembly audit but submitted reasons for absence and did not attend. During this audit, when he continued remarks such as "I don't know Korea's sales ranking" and "This is my first time in Korea," Rep. Kim criticized him, saying, "As a citizen of the Republic of Korea, this is unpleasant." Aldenwood responded, "I only don't know the ranking, but I do know the sales amount. And I have great respect for Korea."

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