South Korea is considering expanding a program that would allow consumers to convert unused reward points into local digital currency after President Lee Jae Myung proposed the idea on July 1 as a way to boost regional economies and support small businesses.
Speaking at a Cabinet meeting, Mr. Lee said unused rewards accumulated through credit-card purchases, retail memberships and other loyalty programs amount to “tens of trillions of won” and suggested they be converted into local currencies that can be spent at neighborhood merchants.
Unused credit-card reward points totaled approximately $2.1 billion as of June 2025, according to industry data. Including dormant retail loyalty points, telecommunications rewards and airline miles, the value of unredeemed consumer rewards is estimated to reach tens of billions of dollars.
The proposal aims to redirect dormant consumer assets into local commerce by allowing rewards that might otherwise expire to be spent through regional currency programs accepted by small businesses.
Some card issuers have already adopted similar services.
NH NongHyup Card has offered point-to-local-currency conversion since 2023, while KB Kookmin Cardintroduced the service on June 22 through a partnership with fintech company Kona I. Customers can convert reward points into local currency at a one-to-one exchange rate, with each point carrying the equivalent value of one Korean won.
Converted balances are deducted before existing local-currency balances when purchases are made.
Industry executives said the service could spread more widely following Mr. Lee’s remarks, noting that the current administration has emphasized policies supporting small businesses and inclusive economic growth.
“The service only requires system upgrades, making broader adoption relatively straightforward,” a card industry executive said. “For issuers, it simply provides customers with another redemption option rather than creating a meaningful financial benefit or cost.”
Unused credit-card reward points generally expire after five years if they are not redeemed.
Industry officials said future programs could allow consumers to voluntarily convert reward points into local currency or automatically transfer points before they expire.
South Korea already operates one of the country’s most developed reward-point redemption systems. Consumers can transfer unused credit-card points directly into bank accounts through the Card Point Integrated Inquiry System, operated by the Financial Services Commission and the Credit Finance Association, or through the Account Infomobile application operated by the Korea Financial Telecommunications & Clearings Institute.
Financial regulators also conduct periodic campaigns encouraging consumers to reclaim dormant financial assets. Since February 2025, older consumers have been able to enroll in a program that automatically applies unused reward points to outstanding credit-card balances.
Industry officials cautioned that extending the initiative to nonfinancial loyalty programs, including retail membership points and airline mileage programs, would require more extensive coordination because those systems are administered by different companies, regulators and technology platforms.
