Apple Criticized by Korean Game Developers for its App Store Refund Policy - MacRumorsOpen MenuShow RoundupsShow Forums menuVisit ForumsOpen Sidebar
Skip to Content

Apple Criticized by Korean Game Developers for its App Store Refund Policy

by

Apple has been criticized in South Korea for its mobile app refund policy which game developers say removes them from the process and is regularly being abused.

Apple controls the App Store payment refund process for paid-for apps and determines whether to give refunds to consumers. According to The Korea Times, because Apple does not provide information about who has been issued a refund, developers have no other choice but to manually track down users and check if they continue to use the charged content they have already received the refunds for.

Korea App Store
Apple says it does not provide information about users who have requested a refund in order to protect consumer rights. But some users have reportedly abused the loophole in Apple's refund policy to purchase charged content multiple times, request refunds and continue to consume the content without actually paying for it. According to The Korea Times, some of the abusers even run profitable businesses to operate the refund process on others' behalf.

Mobile game companies in the country are said to be taking their own measures to counteract Apple, which has so far remained silent on the issue. Korean game development studio Flint said it had independently tracked down 300 users who they suspected of abusing the App Store refund policy, and pledged to "root out the abusers" by requesting judicial authorities for an investigation.

Next Floor, distributor of Korean game Destiny Child, also complained about the difficulties in dealing with abusers without Apple's help.

"We are regulating those who abuse the payment process and damage other users under our management policy," the company said. "Unlike other application stores, Apple does not provide refund information to the game companies and we are having difficulties in promptly counteracting the problem."

Mobile game studio Nexon and Longtu Korea said it had asked Apple for the lists of users who requested refunds several times, but the company did not respond. "I cannot understand Apple's policy in that it does not provide the list of people who abuse the system even when it is already causing problems in the market," said a source from the studio.

By contrast, Google's app store refund policy states that users can receive refunds on charged mobile content only once if they request it within two hours after payment.

Top Rated Comments

Anonymous Freak Avatar
128 months ago
It took me a while to figure out what the big deal was.

It's not that people buy a $1.99 game, then get a refund and keep playing.

It's that people buy $100 in in-game "currency" using an in-app purchase, then get a refund, and keep the $100 of in-game "currency". Then do this again. And again. And again.

Oh, you want to have the best fort in Clash of Clans? $100 in in-game gold, and you can do it quickly! Then get a refund on that in-game gold. Want to get good Pokemon faster? $100 in in-game gold and you can lure more Pokemon to you (for a long time.) Then get a refund on that in-game gold.
Score: 7 Votes (Like | Disagree)
Anonymous Freak Avatar
128 months ago
So... Commenters, we don't need to be specifying "Korean developers" or calling them out by their nationality. This is a problem to *ALL* nationality of developers, it just happens that this article was in a Korean newspaper, so the developers they interviewed are Korean. Saying things like "These Korean developers whining about..." or "I wish these Korean companies would..." is unnecessarily adding nationality (and by proxy race) in to a complaint. Would you have made the same comment if the developers had been from California? Or Texas? Would you have specified "These Californian developers..." or "I wish these Texan companies..."?

If not, then leave "Korean" off the description you post. Their "Koreanness" has nothing to do with the issue.
Score: 6 Votes (Like | Disagree)
SuprUsrStan Avatar
128 months ago
It took me a while to figure out what the big deal was.

It's not that people buy a $1.99 game, then get a refund and keep playing.

It's that people buy $100 in in-game "currency" using an in-app purchase, then get a refund, and keep the $100 of in-game "currency". Then do this again. And again. And again.

Oh, you want to have the best fort in Clash of Clans? $100 in in-game gold, and you can do it quickly! Then get a refund on that in-game gold. Want to get good Pokemon faster? $100 in in-game gold and you can lure more Pokemon to you (for a long time.) Then get a refund on that in-game gold.
Not quite true. In clash of clans, if you request a refund in $100 worth of gems, the game takes the gems spent from you and you end up with thousands of gems in debt. You can still earn gems the normal way but it goes to offset that negative gem count.

Don't know how clash of clans can do this but Koreans can't figure out what the refund was for...
Score: 5 Votes (Like | Disagree)
128 months ago
I hate in app purchases. I disable them from my settings.

So pretty simple. Get rid of in app purchases. Than they wouldn't have an issue tracking down people who ask for refund. One time fee payment for full game.
Score: 4 Votes (Like | Disagree)
128 months ago
To be consistent Apple should have the same policy for their stores - so I can buy an iPhone/MacBook then call to request a refund without returning it. I'm sure there'll only be a "small" number of people abusing it ;)
Score: 4 Votes (Like | Disagree)
128 months ago
And what exactly are people "stealing" by "returning" 100 gold coins in an app - a couple bytes of database space?

I operate my own small business, a small hardware device with an online system connected - getting in on the "smart home" craze. Manufacturing is outsourced, so we don't have to deal with manufacturing shrink, we just pay a per-unit contracted cost. The online service, as with any of these games, is practically zero cost-per-unit. If someone cancels a service, or asks for a refund (which we always offer). Yes, hardware space and bandwidth cost money, but there is no "direct cost" per-user.

Hardware-wise, in the past month, we've had $2388 which I'd classify as shrink at retail price, $912 at cost price. That includes:

- 1 unit damaged in warehouse
- 3 units lost by couriers shipping to customer
- 4 "change of mind" hardware returns that couldn't be re-sold
- 1 unit that was bought via PayPal with a stolen credit card (we had to swallow the cost)
- 3 units that were returned as being faulty, which we determined was fraudulent - 1 had a smashed screen which couldn't have happened during qa/shipping (impact mark), one which was obviously dropped and cracked but otherwise seemed to work fine, and 1 which was returned because apparently only the accessories were in the box, not the unit itself (even though we could see the unit was online, and connected to our service - not for long though!)

At cost price, for us that was around 0.9% shrink vs revenue, and around 1.4% vs per-item profit margins (not taking into account operating costs here). That's something we have to budget for - we *know* it's going to happen, and we take that into account. 100% of our shrink costs come from hardware, not software. Out of that, only a third of shrink was down to "fraud".

Saying shrink can't happen with a digital product is silly. Of course it's going to happen. If you're dealing with people, at some point you're going to deal with fraud. Fact of life. The only difference is the physical cost behind it doesn't scale the same way as with physical products.

Here's two examples:

1. Company A sells a video streaming service for $10/month. Someone purchases a subscription uses a stolen credit card, and watches 50 films. The credit card company (rightfully) does a chargeback 14 days later, and the company cancels the service. A movie averages at 1.5GB, using 75GB bandwidth. They pay AWS $0.06/GB for bandwidth, which equates to $4.50. They also have to pay the rights holders $0.10 per viewing as part of their agreement. That's $5, meaning that the total cost of the fraud is $9.50 - that's $9.50 worth of shrink.

2. Company B offers a mobile video game for free on the App Store, and sells packs of "100 gold coins" for $5. When a user buys coins, they can use them to buy items in the store - the transaction is purely in the game, and the only result of buying the coins is a database entry to tell the game "hey, user X bought 100 coins". Somebody buys 100 packs of coins for $500, buying all sorts of virtual items for their character, again, all database entries. The user claims their child accidentally bought the coins, and Apple refunds the $500. Company B hasn't lost money, other than perhaps a couple of cent in bandwidth costs. Shrink is effectively 0.

That's why I don't understand them chasing so much - unless there is a physical per-unit cost behind it, it's really not worth it. So what if someone buys a game or coins and returns them, they've lost a sale, sure, but they haven't lost money.
you work for company A and i'm another customer. i don't give a flying f*** if Fred next door can or can't watch the latest Star Wars movie because of his fraudulent dealings with you. it literally has no material affect on the outside world.

you work for company B and i'm a customer on the same server as Fred. While you haven't lost money, what you've done is enabled Fred to gain an unfair advantage over me and many others who have not bought the coins and got the stuff for free. of course, we don't know that he hasn't paid for them - perhaps he's just a mr moneybags. but word gets out, the big spenders get upset that people competing with them are doing so by fraud and a ****storm goes down on the game's message boards. shrink isn't measurable in terms of lost sales - yet - but is high in terms of lost reputation and goodwill. it could well have a material effect an order of magnitude higher than company A's issues going forward.

comparing a video streaming service which serves one end user at a time, to a MMO game where the actions of one gamer affect the others is silly.
Score: 3 Votes (Like | Disagree)

Popular Stories

intel macs no more updates

Mac App Store Apps Can Now Drop Support for Intel Macs

Tuesday September 1, 2026 4:50 pm PDT by
Apple today informed developers that universal Mac App Store apps that require macOS 13 or later can remove support for Intel-based Mac computers. We're reaching out to let you know that universal macOS apps on the Mac App Store that require macOS 13 or later can now remove support for Intel-based Mac computers. By removing support for Intel-based Mac computers, you can simplify your...
Liquid Glass App Store Feature

Apple Plans to Squeeze More Revenue From the App Store, Report Says

Monday September 7, 2026 3:19 am PDT by
Apple is looking at further ways to monetize the App Store and increase the company's recurring revenue from the platform, according to a new report. Writing in his latest Power On newsletter, Bloomberg's Mark Gurman said that newly appointed Apple CEO John Ternus and services chief Eddy Cue are behind the effort to raise margins from the App Store, which already generates Apple an estimated ...
X twitter logo

X's Standalone Messaging App XChat Disappears From App Store

Monday September 14, 2026 3:25 pm PDT by
X's XChat app is no longer available from the App Store. The app does not come up when searching for it in the App Store, and clicking a link to it on the web returns an unavailable error. XChat allows X users to communicate with one another using end-to-end encryption and disappearing messages. The app's description says it is a "private, focused space built for conversation." XChat launched...
Latest Stories
iPhone 18 Pro Sales Jump in China Ahead of iPhone Duo Launch
iPhone 18 Pro Sales Jump in China Ahead of iPhone Duo Launch
19 minutes ago
Apple TV Still Down for Some Users Following Apple Services Outage
Apple TV Still Down for Some Users Following Apple Services Outage
1 hour ago
PSA: Apple Mail on Mac May Stop Syncing Microsoft 365 Accounts Today
PSA: Apple Mail on Mac May Stop Syncing Microsoft 365 Accounts Today
1 hour ago
Apple's Smart Home Hub: Everything We Know So Far
Apple's Smart Home Hub: Everything We Know So Far
12 hours ago
Apple's Home Hub Borrows From the iPhone Duo's StandBy Mode
Apple's Home Hub Borrows From the iPhone Duo's StandBy Mode
13 hours ago
Apple Invites App Updated With Three New Features
Apple Invites App Updated With Three New Features
17 hours ago
Apple Event on October 13?
Apple Event on October 13?
18 hours ago
Apple Watch SE 3 vs. Series 12 Buyer's Guide: Which Should You Buy?
Apple Watch SE 3 vs. Series 12 Buyer's Guide: Which Should You Buy?
20 hours ago
iPad Mini 8 to Offer These 10 New Features
iPad Mini 8 to Offer These 10 New Features
20 hours ago
DoorDash Unveils AI Food Ordering Through Apple's Messages App
DoorDash Unveils AI Food Ordering Through Apple's Messages App
22 hours ago
Amazon Takes Up to $150 Off Select M5 MacBook Air Models
Amazon Takes Up to $150 Off Select M5 MacBook Air Models
22 hours ago
Apple Still Plans to Release a New Full-Sized HomePod
Apple Still Plans to Release a New Full-Sized HomePod
23 hours ago
Apple Working to Expand HomeKit
Apple Working to Expand HomeKit
1 day ago
Apple Smart Home Hub to Feature iMac G4-Style Design
Apple Smart Home Hub to Feature iMac G4-Style Design
1 day ago
Three New Apple Smart Home Products Coming on October 13
Three New Apple Smart Home Products Coming on October 13
1 day ago
Apple Pay Now Available in India With Axis Bank Cards
Apple Pay Now Available in India With Axis Bank Cards
2 days ago
OpenAI Launches Always-On 'Dots' Agents to Rival Meta's Muse
OpenAI Launches Always-On 'Dots' Agents to Rival Meta's Muse
2 days ago
AirPods 5 Teardown: Batteries Removable, Case Still Tough
AirPods 5 Teardown: Batteries Removable, Case Still Tough
2 days ago
iPhone 18 Pro Owners Complain of Speaker Crackling or Popping
iPhone 18 Pro Owners Complain of Speaker Crackling or Popping
2 days ago
You Can 'Get Ready' for iPhone Duo Pre-Orders on October 12
You Can 'Get Ready' for iPhone Duo Pre-Orders on October 12
2 days ago
Apple Pay Reportedly Launching in India Today
Apple Pay Reportedly Launching in India Today
2 days ago
Apple Releases New AirPods Beta Firmware
Apple Releases New AirPods Beta Firmware
2 days ago
Apple Shares New Guide for Using iOS 27 Parental Controls
Apple Shares New Guide for Using iOS 27 Parental Controls
2 days ago
Apple Creator Studio and Final Cut Camera Get New Features
Apple Creator Studio and Final Cut Camera Get New Features
2 days ago
Apple Explains Why It Removed ICE Tracking Apps Last Year
Apple Explains Why It Removed ICE Tracking Apps Last Year
2 days ago
Amazon Expands $779.99 Apple Watch Ultra 4 Deal to More Models
Amazon Expands $779.99 Apple Watch Ultra 4 Deal to More Models
2 days ago
Switch Siri AI for ChatGPT on Your Mac
Switch Siri AI for ChatGPT on Your Mac
2 days ago
Apple Says Emergency SOS via Satellite Now Available in Norway
Apple Says Emergency SOS via Satellite Now Available in Norway
2 days ago
AppleCare Guide: Is it Worth Paying For?
AppleCare Guide: Is it Worth Paying For?
2 days ago
Apple Reportedly Planned to Replace 5,000 Support Employees With AI
Apple Reportedly Planned to Replace 5,000 Support Employees With AI
2 days ago

🔗 Related Apple News & Rumors

Stay updated with the latest Apple ecosystem news and verified rumors