South Korea fines Google and Apple 63.7 billion won over in-app payments

South Korea has moved to fine Google and Apple a combined 63.7 billion won, about $48 million, for pushing app developers into their own in-app payment systems.

Who owes what

The penalties were set to be finalized by the Korea Media and Communications Commission (KMCC) on October 28, 2026. The KMCC is the country’s media and telecommunications regulator.

Google carries the larger share, at approximately 42.9 billion won. Apple’s portion comes to about 20.8 billion won.

Those figures have shifted since regulators first floated them. In October 2023, the preliminary numbers put Google at 47.5 billion won and Apple at 20.5 billion won.

The core allegation is straightforward. Both companies are accused of compelling developers to process payments through their proprietary systems, rather than letting them pick alternatives freely.

The investigation found that both companies charged effective fees of around 26% on third-party payment options. That compares with the 30% standard that the platforms had previously set.

How South Korea got here

The legal foundation is a 2021 amendment to South Korea’s Telecommunications Business Act. The change took effect in March 2022.

Regulators opened their investigation in August 2022, only months after the rules kicked in. A preliminary sanctions notice followed in October 2023.

From there, the case stalled through procedural delays stretching nearly three years. Part of the hold-up involved debate over what corrective orders should look like, beyond the monetary penalty itself.

The thorniest issue was so-called “anti-steering” obligations. These concern whether platforms can stop developers from pointing users toward cheaper payment options outside the app.

What this means for platforms and developers

Developers are the clearest stakeholders. The investigation framed the payment requirements and the roughly 26% third-party fee as disadvantaging local developers in particular.

The ruling’s reach may also extend beyond South Korea. The research findings note the decision could influence how global platforms manage payment systems and competition in app marketplaces.

The 26% figure is likely to draw the most scrutiny from those watching. It suggests that simply permitting alternative payments does not guarantee meaningful competition if platforms can keep charging near-standard commissions on outside transactions.