Starting in May, credit card reward points can be converted into local currency.
The government announced this plan during the 17th National Policy Coordination Meeting chaired by the Prime Minister on November 13. The report outlined the 'Unused Points Conversion to Local Currency' initiative.
This measure follows a directive from the President issued during a Cabinet meeting on June 30, where he instructed officials to convert various hidden points into local currency to boost consumer spending and revitalize traditional markets and small businesses. The Office for Government Policy Coordination, along with the Ministry of the Interior and Safety, the Financial Services Commission, and the Korea Financial Telecommunications and Clearings Institute, developed this plan.
The government will initially focus on credit card points, which have accumulated to 2.1 trillion won and have a well-established cash conversion system.
Beginning in May, users will be able to check their card points through the Financial Telecommunications and Clearings Institute's 'Account Info' system or local currency applications and convert them into local currency for the desired amount. The conversion will take place the day after the application is submitted.
To facilitate this, the government plans to link the Account Info system with credit card companies and local currency operators.
In addition to credit card points, discussions are underway to allow the conversion of KTX mileage and carbon neutral points from public institutions into local currency. The government also aims to encourage voluntary participation from the private sector, including retail and airline industries.
Lim Gi-geun, head of the Office for Government Policy Coordination, stated, "We will continue to discuss ways to enhance the utilization of dormant points, reduce the financial burden on households, and channel funds into traditional markets and small businesses to invigorate the local economy."
* This article has been translated by AI.
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