Apple 'Likely' to Face Sanctions in South Korea Over Unfair Carrier Contracts - MacRumors
Skip to Content

Apple 'Likely' to Face Sanctions in South Korea Over Unfair Carrier Contracts

by

Apple will likely face sanctions from the Korean Fair Trade Commission for unfair iPhone contracts that require local carriers to pay advertising and repair costs, reports The Korea Herald, citing industry sources.

Apple's Korean division has been criticized for asking carriers to foot the bill for advertising costs, launch events, and iPhone repairs, leading to an investigation from the Fair Trade Commission. The Korean FTC recently agreed to impose penalties on Apple Korea and has contacted the company for an explanation before making a final decision on whether or not to impose sanctions.

iphone x quad
According to The Korea Herald, three Korean carriers, SKT, KT, and LG Uplus, were directed by Apple to air TV commercials promoting the iPhone 8 and the iPhone X, but were reportedly required to pay for the commercials.

"When you see iPhone's TV commercials here, everything is the same except for a telecom operator's logo at the end of the commercials. Still, telecom firms should bear all the costs standing at billions of won," said an executive of one of the three firms on the condition of anonymity.

Apple Korea has been under investigation in Korea since 2016, with the Korean Federal Trade Commission conducting raids in June 2016 and November 2017. It's not clear what kind of fines the company could be facing in the country should the FTC move forward with sanctions.

Top Rated Comments

kdarling Avatar
104 months ago
South Korea? The home of Samsung? The country with the corrupt government? The country that is run by Samsung?

Who woulda thunk it?
:D

Says a guy with California in his signature, home of the few court wins Apple managed to get with patents that were quickly invalidated in other countries.

Accusations of hometown prejudice can be made all over the world.
Score: 6 Votes (Like | Disagree)
macfacts Avatar
104 months ago
So if you want to advertise your local franchise, the franchisee pays for their own advertising? That's pretty standard.

Or will car dealers start asking the manufacturer to pay for their advertising too?
Those local carriers want to advertise their services and phones they offer. Apple's contracts force them to make (edit: not make, show) "iPhone only commercials" and cover the cost.

What bizaroo world do you live in where that sounds reasonable.
Score: 5 Votes (Like | Disagree)
TheColtr Avatar
104 months ago
South Korea? The home of Samsung? The country with the corrupt government? The country that is run by Samsung?

Who woulda thunk it?
Score: 3 Votes (Like | Disagree)
alphaod Avatar
104 months ago
So if you want to advertise your local franchise, the franchisee pays for their own advertising? That's pretty standard.

Or will car dealers start asking the manufacturer to pay for their advertising too?
Score: 3 Votes (Like | Disagree)
Mousse Avatar
104 months ago
I see nothing wrong with having the carrier pay for advertising and events, but making them pay for phone repair?
Score: 2 Votes (Like | Disagree)
deanthedev Avatar
104 months ago
That's a good thing, as it shows that South Korea is going through a dismantling of old ways. Paying a friend of a friend to help you with government red tape is common all over the planet. In the US we still do it, but semi-hide it by hiring people into civilian lucrative jobs afterwards.

In any case, it has zero to do with Apple and its carrier contracts.



That might just show that the US still protects Apple execs even more than Korea used to protect Samsung execs.

Some think Jobs should've gotten jail time for his stock scandal, same as other less fortunate execs of smaller companies. Others think he should've gone to trial for his secretive anti-poaching and other anti-trust plots.

But, just like used to happen with Samsung execs, Jobs was deemed too valuable to charge with anything. There's very little difference in the types of influence going on in both cases. Well, except Samsung actually is critical to South Korea's economy and defense, unlike Apple.
The mental gymnastics you go through to try and back your ridiculous claims us truly astounding.
Score: 1 Votes (Like | Disagree)

Popular Stories

iOS 26

iOS 26.4 Adds Two New Features to CarPlay

Tuesday March 24, 2026 1:55 pm PDT by
iOS 26.4 was released today, and it includes a couple of new features for CarPlay: an Ambient Music widget and support for voice-based chatbot apps. To update your iPhone 11 or newer to iOS 26.4, open the Settings app and tap on General → Software Update. CarPlay will automatically offer the new features so long as the iPhone connected to your vehicle is running iOS 26.4 or later....
Apple Business hero

Apple Unveils 'Apple Business' All-in-One Platform

Tuesday March 24, 2026 8:53 am PDT by
Apple today announced Apple Business, a new all-in-one platform that unifies device management, productivity tools, and customer outreach features. The service is designed to be a consolidated replacement for several of Apple's existing business-focused offerings, including Apple Business Essentials, Apple Business Manager, and Apple Business Connect. It provides organizations with a single...
AirPods Pro Firmware Feature

Apple Releases New Firmware for AirPods Pro 3, AirPods Pro 2 and AirPods 4

Tuesday March 24, 2026 12:31 pm PDT by
Apple today released new firmware for the AirPods Pro 2, AirPods Pro 3, and the AirPods 4. The firmware has a version number of 8B39, up from 8B34 on the AirPods Pro 3, 8B28 on the AirPods Pro 2, and 8B21 on the AirPods 4. There is no word on what's included in the firmware, but Apple has a support document with limited notes. Most updates are limited to bug fixes and performance...