App Store Fees Conflict: Developers Lose, Consumers Pay More

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By Global Team

The discontent with app market fees and operating methods has resurfaced.

According to the ‘2024 App Market Survey’ results released by the Korea Communications Commission and the Korea Internet & Security Agency on the 11th, 70.4% of domestic app developers cited in-app payment fees as the biggest issue.

The responding developers also pointed out other major issues like the ambiguity of revenue settlement (11.6%) and the limitation in the choice of payment methods (8.9%).

Unfair experiences were also confirmed in the app review process. 36.8% of Apple App Store users and 26.2% of Google Play users experienced review delays. Registration refusals stood at 20% for Apple and 13% for Google. App deletions were recorded at 8.2% for Google and 3.2% for Apple.

The most common app registration review period for Google was within 2 days, at 25.6%, while for Apple, 42.5% reported it took 6-7 days. Developers responded that the review criteria were unclear and that feedback was delayed.

The total scale of app market transactions in 2023 was 8,195.2 billion won, a decrease of 6.4% from the previous year. The number of registered apps was 5,318,182, and there were 1,636,655 developers.

The usage rates of domestic app markets were 67.2% for Google Play and 29.7% for Apple App Store. Developer revenue proportions were 67.5% for Google and 28.2% for Apple.

In a consumer survey, the average monthly paid content purchase was 2.82 times, with a total expenditure of approximately 23,073 won. Regular payments were at 1.43 times, 13,317 won, and one-time payments were at 1.39 times, 9,756 won.

28.3% had experienced refund requests, with half receiving refunds within a week.

The preference for in-app payments was 74.5%, with convenience being the reason. 25.5% preferred website payments, citing cheaper prices.

The Korea Communications Commission has announced that it will create a fair app market ecosystem based on the survey results. Jeon Ji-hyun, a market survey officer, stated, “We will actively improve user inconveniences.”

App market infographic
App market infographic

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