Google's app store fees in S. Korea may increase by 156.8 billion won on new billing policy

Google's new billing policy expanding its service commission to 30 percent digital content purchases could increase its app store fees by as much as 156.8 billion won in South Korea.

Thre new commission rates take effect beginning October this year.

Sales on Google's Play store last year were estimated at over 5 trillion won, with fees on apps that would be impacted by the new billing policy reaching 287.4 billion won.

According to a report by the Ministry of Science and ICT., such fees are estimated to rise by 156.8 billion won, or 54.5 percent, based on sales growth estimates for this year. If sales were the same as last year, the fees would rise by 30.8 percent or 88.5 billion won.

Of the companies surveyed, 35 percent would accept the billing policy changes, while 29.9 percent would raise fees for users, and 27.1 percent would use other app stores.

Local developers and lawmakers fiercely opposed Google's move, arguing that consumers will end up paying for the additional fees.

Last year, lawmakers proposed bills to limit Google's move by banning certain payment methods in content transactions.