Apple's Korean unit paid its first ever compensation in South Korea to an iPhone user over a controversial function that tracks users' locations, a S Korean regional court said on Thursday. According to a report by Yonap News, Apple Korea paid 1 million won (US$946.5) in compensation to an iPhone user in late June. The user had asked the Changwon District Court to order Apple to pay the sum as a compensation for violating his privacy through the hit smartphone's movement-tracking function.

Apple Korea did not raise an objection to the court's initial compensation order during the two-week period given to challenge the decision, an action seen as the firm's admission of the validity of the privacy dispute.

The court decision and Apple's first ever compensation settlement in the country are expected to trigger an array of similar lawsuits against the Cupertino, California-based company down the road. Such class actions may further pressure Apple in the home market of its key rival Samsung Electronics. Samsung's flagship Galaxy S smartphone has emerged as a major competitor to the iPhone.

Last April, Apple had responded to the location tracking controversy and released a software update to fix a problem one month later.