Apple Publishes New Terms For South Korean Developers

Apple said it will introduce the new pricing policy, including changes in tax calculation for South Korean app developers, from next year in a move to comply with the local antitrust regulator’s probe.

“Apple today announced the most comprehensive upgrade to pricing capabilities since the App Store first launched, including changes to tax calculation that will allow Apple to reflect taxes in the commission calculation to increase developer proceeds in South Korea and six other countries,” the US tech giant said in a release.

Last month, Fair Trade Commission (FTC) Chairperson Han Ki-jeong said Apple would voluntarily correct its commission policy, which ends up overcharging local app developers.

The FTC launched a probe into Apple’s alleged unfair practices in September.

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Apple imposes a 30 percent commission from in-app payments on app developers. But Korean firms are asked to pay a 33 percent rate, as they were charged based on the revenue that includes a 10 percent value-added tax.

The company said it will set the commission based on tax information provided by local developers.

“Going forward, local developers will be able to provide Apple with tax category information that allows Apple to estimate and remove taxes, such as value-added tax, before calculating commission,” Apple said, adding the new pricing scheme will take effect in January next year.

Apple said its new pricing policy will encourage Korean innovators, who see more than half of their revenue come from outside of Korea, to engage more in the App Store.