From May next year, credit card points accumulated by consumers will be converted into local currency, allowing them to be used at traditional markets and neighbourhood shopping districts. The government plans to raise the use of unused card points worth about 2.1 trillion won and channel spending to local small merchants.

The government on Nov. 13 reported a plan to push for converting unused points into local currency at the 17th National Policy Coordination Meeting chaired by the prime minister.

The government plans to launch the service in May 2027 for card points that already have a cash conversion system. Consumers can check their card points on the Korea Financial Telecommunications and Clearings Institute's Account Info service or a local currency app and apply to convert an amount they want, then use it as local currency from the next day.

To do so, the government plans to use Account Info as an intermediary system to link the computer networks of multiple card companies and local currency operators.

The service will be expanded in stages. The government will discuss with related agencies ways to convert points from public institutions, such as KTX mileage and carbon neutrality points, into local currency, and it plans to encourage participation by private companies, including in retail and airlines.

Lim Ki-geun (임기근), head of the Office for Government Policy Coordination, said, "By increasing the use of various dormant points, we will reduce household burdens," adding, "At the same time, we will continue consultations so that funds flow into small merchants such as traditional markets and neighbourhood shopping districts and can inject new vitality into local economies."

Prime Minister Han Seong-sook (한성숙) said at the meeting, "We will do our best to expand participation to include various points in both the public and private sectors, raise consumers' spending capacity, and bring vitality to neighbourhood shopping districts."