StoreKit External Purchase Entitlement for South Korea
The Telecommunications Business Act in South Korea was recently amended to mandate that apps distributed by app market operators in South Korea be allowed to offer an alternative payment processing option within their apps. To comply with this law, developers can use the StoreKit External Purchase Entitlement. This entitlement allows apps distributed on the App Store solely in South Korea the ability to provide an alternative in-app payment processing option. Developers who want to continue using Apple’s in-app purchase system may do so and no further action is needed.
Those who want to use a different payment system will need to enable the entitlement in Xcode, use required StoreKit APIs, and submit a separate app binary for iOS and/or iPadOS that is distributed solely on the App Store in South Korea.
This is interesting since Apple recently removed the requirement for apps in the Netherlands to create a separate binary in order to do external purchases.
Apple provides developers with a list of pre-approved payment service providers (PCPs) in South Korea that includes KCP, Incise, Toss, and NICE. Developers can still use a different PSP, but it must meet the same criteria of having a secure payment processing system and an established track record of protecting user privacy. Notably, Apple will earn a 26% commission on all processed sales, despite the Korean regulator’s misgivings about commissions taken on third-party payment systems.
It’s hard to imagine that Apple’s new StoreKit External Purchase Entitlement will be attractive to many developers, given its limitations and the need to create a separate version of apps just for South Korea. I expect we’ll see this new StoreKit entitlement offered on a country-by-country basis as other countries follow South Korea’s lead, but I don’t expect it will lead to meaningful use of third-party payment processors unless and until apps are available outside the App Store via sideloading.
Previously:
- Netherlands and Apple Reach External Payments Agreement
- App Store External Purchase Fee: 27%
- External Purchase Without a Separate App
- StoreKit External Purchase Entitlement for Netherlands
- Apple Wants Fee for Alternate Billing Systems
- Google Wants Fee for Alternate Billing Systems
- Apple Refuses App Store Changes for South Korea
- South Korea App Store Bill
A separate binary just makes things just a bit harder for developers to keep them on IAP. Tactics like these really make me question why I work on apps for this bully— whoops I mean company— (even though I’m part of a big org that isn’t effected by any of this BS)