Apple Korea proposes 100 Billion won measures amid allegations of anti-competitive practices

Apple Inc.'s South Korean unit offered 100 billion won worth of programs to address allegations of its violation of competition law.

The programs include 40 billion won to build a research and development center for local small and medium-sized smartphone manufacturing firms and 25 billion won to give consumers 10 percent discounts on smartphone repairs and insurance service.

Another 25 billion won will be allocated for setting up an education center to train information, communication, and technology professionals.

Apple Korea also agreed to give mobile carriers more say in sharing advertising costs and approving ads to reduce the advertising burden.

The Korea Fair Trade Commission (KFTC) is probing Apple Korea over allegations it had required SK Telecom Co., KT Corp., and LG Uplus Corp. to pay the television advertisement costs and warranty service for its iPhones.

With Apple having a clear advantage over local mobile carriers, the KFTC said that handing over the cost of advertisements is another way to squeeze their profits.

KFTC director-general Song Sang-min said Apple Korea had unilaterally ordered mobile carriers to set ad costs.

The parties will discuss whether to accept Apple Korea's proposal by Oct. 3.

South Korea allows companies accused of anti-competitive practices to propose a correction scheme without deliberating whether its practices violate competition law.