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
99 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
99 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)
alphaod Avatar
99 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)
TheColtr Avatar
99 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)
Mousse Avatar
99 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)
kdarling Avatar
99 months ago
Please. What he said is true. Samsung has had not one, but two CEOs sentenced to prison. Along with dozens of other executives over the years.
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.

Can you name any Apple CEOs or executives that have gone to prison (and then released much earlier than they should have)?
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.
Score: 1 Votes (Like | Disagree)

Popular Stories

ios 26 1 slide to stop

iOS 26.1 Brings Back 2007 Feature in New Way

Friday October 31, 2025 1:40 pm PDT by
The upcoming iOS 26.1 update includes a small but helpful change for iPhones, and it could prevent you from running late to something important. Specifically, when an alarm goes off in the Clock app, there is a new "slide to stop" control on the screen for turning off the alarm. On previous iOS 26 versions, there is simply a large "stop" button, which could be accidentally tapped. The new ...
iOS 26

6 New Things Your iPhone Can Do in iOS 26.1

Wednesday October 29, 2025 4:22 am PDT by
Apple is about to drop iOS 26.1, the first major point release since iOS 26 was rolled out in September, and there are at least six notable changes and improvements to look forward to. We've rounded them up below. Apple has already provided developers and public beta testers with the release candidate version of iOS 26.1, which means Apple will likely roll out the update to all compatible...
M5 MacBook Pro

Waiting for New Macs? Apple Just Shared Bad News

Friday October 31, 2025 7:32 am PDT by
Apple has just given a strong indication that it will not be releasing any additional new Macs for the remainder of the year. Apple's CFO Kevan Parekh dropped the hint during the company's earnings call on Thursday:On Mac, keep in mind, we expect to face a very difficult compare against the M4 MacBook Pro, Mac mini, and iMac launches in the year-ago quarter.Parekh essentially gave a heads up ...
iOS 26

iOS 26.1 Coming Soon: New Features for Your iPhone and Release Date

Monday October 27, 2025 7:55 am PDT by
The upcoming iOS 26.1 update includes a handful of new features and changes for iPhones, including a toggle for changing the appearance of the Liquid Glass design, "slide to stop" for alarms in the Clock app, and more. Below, we outline key details about iOS 26.1. Release Date Given that Apple has yet to seed an iOS 26.1 Release Candidate, which is typically the final beta version, the...
iPhone 17 Pro Cosmic Orange

8 Reasons to Wait for Next Year's iPhone 18 Pro

Thursday October 30, 2025 4:42 am PDT by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models at the same time, which is why we often get rumored features months ahead of launch. The iPhone 18 series is no different, and we already have a good idea of what to expect for the iPhone 18 Pro and iPhone 18 Pro Max. One thing worth...
maxresdefault

Apple TV 4K Could Still Launch Before 2025 Ends: All the Rumored Features

Monday October 27, 2025 4:51 pm PDT by
Apple is designing an updated version of the Apple TV 4K, and rumors suggest that it could come out sometime in the next couple of months. We're not expecting a major overhaul with design changes, but even a simple chip upgrade will bring major improvements to Apple's set-top box. Subscribe to the MacRumors YouTube channel for more videos. We've rounded up all the latest Apple TV rumors. ...
Coffee Burgundy and Purple iPhone 18 Pro Mock 1

Leaker Outlines Potential New Colors for iPhone 18 Pro

Friday October 31, 2025 8:28 am PDT by
Apple's iPhone 18 Pro models could be available in new rich and warm color option, according to a known leaker. The Weibo user known as "Instant Digital" today suggested that next-year's iPhone 18 Pro models will be available in at least one of the following color options: Coffee, purple, and burgundy. The iPhone XR, iPhone 11, iPhone 12, iPhone 14, and iPhone 14 Pro were all available in ...
ipad mini 7 feature blue

OLED iPad Mini: Release Date, Pricing, and What to Expect

Wednesday October 29, 2025 7:13 am PDT by
Rumors are stoking excitement for the next-generation iPad mini that Apple is reportedly close to launching. So what should we expect from the successor to the iPad mini 7 that Apple released over a year ago? Read on to find out. Processor and Performance Apple is working on a next-generation version of the iPad mini (codename J510/J511) that features the A19 Pro chip, according to...
Apple Foldable Thumb

iPhone Fold: Launch, Pricing, and What to Expect From Apple's Foldable

Friday October 31, 2025 8:52 am PDT by
Apple is expected to launch a new foldable iPhone next year, based on multiple rumors and credible sources. The long-awaited device has been rumored for years now, but signs increasingly suggest that 2026 could indeed be the year that Apple releases its first foldable device. Below, we've collated an updated set of key details that have been leaked about Apple's foldable iPhone so far. Ove...