FSC clears Apple Pay for launch in Korea

An Apple logoa at an Apple store in Seoul. [NEWS1]

The Korean government has given Apple Pay the green light.

The Financial Services Commission (FSC) on Friday said credit card companies will be allowed to implement Apple Pay in Korea since they have followed the necessary procedures.

The financial authority said it expects Apple's payment service to make customers' lives easier and to promote the development of Near Field Communication (NFC)-based payment technology.

However, the FSC noted that credit card companies should not pass the financial burden of Apple Pay-related commissions onto customers or stores that subscribe to the services.

Credit card companies must also implement measures that protect customers including accountability for damages caused by identity theft or leaks of customers’ personal information.

Apple Pay's impending debut in Korea comes nearly a decade after Apple first introduced the payment system in 2014.

The payment system was not available in Korea as Apple Pay is based on NFC technology, unlike other mobile payment services like Samsung Electronics’ Samsung Pay that use magnetic secure transmission (MST) technology or integrated circuits (IC).

However, Apple Pay has become a dominant mobile payment service with over 500 million users worldwide as of September 2020.

The FSC-affiliated Financial Supervisory Service (FSS) completed its review of Apple Pay's customer protections and legal compliance last month.

The FSC held a closed-door meeting on Jan. 25 with the Credit Finance Association and executives from Shinhan Card, Samsung Card and BC Card to discuss Apple Pay.

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]