Conversion of credit card points to cash vouchers to be allowed starting May

SEOUL, Nov. 13 (Yonhap) -- Credit card users will be able to convert their dormant reward points into regional cash vouchers starting May next year, officials said Friday, as part of efforts to boost consumption and breathe vitality into local economies.

The government announced the measure after President Lee Jae Myung instructed officials in late June to allow the conversion of "various hidden or dormant points into local currency to boost consumer vitality and revitalize traditional markets and neighborhood shops," officials said.

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 come up with details, officials said.

Credit card points will be the first to be allowed for the conversion.

Accumulated card points amount to 2.1 trillion won (US$1.57 billion) and such points already have well-established systems for conversion into cash, officials said.

Once the conversion service begins in May, card users can use "account info" or "regional currency" apps to see how many points they have and ask for the conversion of as many points as they want into local currencies that they can use starting the following day.

Officials said they plan to work with relevant agencies to expand the service to KTX rail miles and other points.

"We will continue discussions to have various dormant points used more so that financial burdens on households are eased and money is channeled toward small business owners in traditional markets and local commercial districts, ultimately breathing new vitality into regional economies," Government Policy Coordination Minister Lim Ki-keun said.