BusinessNov 3, 2026, 8:17 AM UTC·2 min read

South Korea Fines Google and Apple 63.7 Billion Won Over In-App Payments

South Korea's media and communications regulator fined Google and Apple a combined 63.71 billion won for forcing in-app payments, putting app store fees under scrutiny.

Smartphone showing app store icons next to a gavel, symbolizing South Korea's fine on Google and Apple over in-app payments. — Image: zdnet.co.kr

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South Korea's Korea Media and Communications Commission has fined Google and Apple a combined 63.71 billion won and ordered them to correct their practices over forced in-app payments. Google must pay 42.9 billion won and Apple 20.81 billion won. It is the first sanction since the 2021 amendment to the Telecommunications Business Act banned the practice.

The regulator found that both companies used their market position to limit developers' freedom to choose a payment method. Although they allowed third-party payments, they charged high fees and restricted the use of external payments, which effectively pushed developers toward their own systems. The commission ordered them to allow external payments, adjust third-party payment fees to a reasonable level and improve app review procedures.

Google's new fee structure

Google plans to apply a new fee system in South Korea from December 31, based on a revision it announced in March. It separates service fees from payment fees. Developers pay a 10% service fee on their first $1 million in annual revenue, down from 15%. Above that, general in-app transactions carry 20% for newly installed users and 25% for existing users, falling to 15% and 20% for those who qualify for a preferred program.

Using Google Play billing adds a 5% payment fee in Korea. For existing users, the total would be 30%, so the burden could remain the same as before. For new users it would be 25%, leaving room for savings.

Apple has explained a voluntary improvement plan to the regulator, but no Korean fee rates or timeline have been confirmed. The company says it does not agree with the sanction.

Who benefits

The games industry expects smaller studios to benefit most, while large publishers that earn mainly from existing users are likely to see little change. Building an own payment system avoids Google's payment fee but not the service fee, and adds payment processor costs and operating expenses. Web payments can also lower purchase rates because users must leave the app.

Kim Yong-ki of the Korea Arts Administration Association said the planned change amounts to only a 5-percentage-point cut and called for a fee system that includes compensation for damages.

Separately, the Fair Trade Commission is pursuing a case against Google for abusing its dominant position in app markets. It opened deliberations in July over claims that Google restricted rival app stores by supporting major game makers with advertising and cloud costs. The fine could reach about 850 billion won at the statutory maximum, but whether and how much will be decided later.