Apple Inc. agreed to amend the iPhone repair and return policies in South Korea in response to consumer complaints about its use of refurbished products, the country's antitrust watchdog said Wednesday.

The Cupertino, California-based company will replace iPhones within 30 days of purchase with new products, instead of refurbished phones, if any problems arise with the original device, the Fair Trade Commission (FTC) said in an emailed statement.

Under the revised terms for iPhone sales, the U.S. company also agreed to allow local iPhone customers to pick the kind of after-sales service they would like to receive, among a full refund, a replacement with new products, a replacement with refurbished products and a free repair service with a damaged iPhone, the commission said.

Previously, it was Apple that chose. Some local consumers who exchanged a damaged iPhone with refurbished phones expressed complaints for not getting new products.

Refurbished phones are made by reassembling parts from returned iPhones. Apple says they function the same as new products.

The commission, which has been in talks with Apple to revise iPhone sales terms in South Korea, said that it believes the revisions better reflects demand from consumers.

More than half of smartphone-related complaints filed with the Korea Consumer Agency during the first 11 months in 2010 involved Apple's iPhone. Among 72 complaints about the iPhone, 63 cases addressed iPhone's after-sales service policies, the agency said. (Yonhap News)