South Korea to let card users convert unused points into cash
Accumulated card points total 2.1 trillion won, and officials plan to extend the conversion service to rail miles and other points.
South Korea will let credit card users exchange idle reward points for local currency from May next year, officials said on Friday, the national news agency Yonhap reported.
The plan follows an instruction from President Lee Jae Myung in late June, when he asked officials to allow hidden or dormant points to be turned into local money to spur spending and support traditional markets.
The Office for Government Policy Coordination, under the prime minister's office, has since worked with the interior ministry, the Financial Services Commission and the Korea Financial Telecommunications and Clearings Institute to draft the details, officials said.
Credit card points will be the first category covered by the change, officials said.
Accumulated card points total 2.1 trillion won, or $1.57 billion, and existing systems already allow them to be converted into cash, officials said.
Once the service launches in May, cardholders will check their balances through two smartphone apps, account info and regional currency, and can convert any amount they choose, with the local money spendable the following day.
Officials said they will work with relevant agencies to extend the service to KTX rail miles and other point programs.
Government Policy Coordination Minister Lim Ki-keun said talks will continue to put more idle points to use, easing household costs and directing spending to small merchants in traditional markets and local shopping districts.
The measure is aimed at easing household financial strain and steering money toward small businesses, officials said.