Despite Frequent Use, Over 70 Billion Won in Credit Card Points Expire Unused Every Year

36.5 Billion Won in Points Expired in First Half of This Year, Hyundai Card Tops the List
"Consumer Rights Infringed"... Calls for Institutional Reform

It has been revealed that more than 70 billion won worth of credit card points expire unused every year. This has led to calls for institutional improvements to better protect consumer rights.

More than 70 billion won worth of credit card points expire unused every year. Unrelated photo. Pixabay

According to data titled "Status of Credit Card Point Expiration Over the Past Five Years," submitted by Lee Yangsoo, a member of the National Assembly’s Political Affairs Committee from the People Power Party, and provided by the Financial Supervisory Service on August 12, the total amount of expired points from eight major credit card companies (Shinhan, Samsung, Hyundai, KB Kookmin, Lotte, Hana, Woori, and BC) in the first half of this year reached 36.5 billion won.

By company, Hyundai Card had the highest amount of expired points at 10.2 billion won, followed by Hana Card (7 billion won), KB Kookmin Card (5.8 billion won), Samsung Card (4.7 billion won), Woori Card (4 billion won), Shinhan Card (2.9 billion won), Lotte Card (1.8 billion won), and BC Card (5 million won). However, since Hyundai Card, Lotte Card, and BC Card did not provide data on affiliated points, the actual amount of expired points is likely even higher.

From 2021 to this year, a total of 316 billion won in credit card points have expired over the past four years. By year, the expired amounts were 80.8 billion won in 2021, 83.2 billion won in 2022, 80.3 billion won in 2023, and 71.7 billion won in 2024, with an average of about 80 billion won expiring each year.

In contrast, the amount of credit card points accumulated during the same period increased by 92% (2.8533 trillion won), from 3.0904 trillion won in 2021 to 5.9437 trillion won this year. This year alone, the accumulated points in the first half reached 3.0753 trillion won, and the total is expected to surpass 6 trillion won by the end of the year. The rate of point expiration during the same period ranged from 1% to 6%, with Hana Card recording the highest rate at 6.2% in the first half of the year.

To reduce unused points, the Financial Services Commission and the Credit Finance Association have been operating the "Integrated Card Point Inquiry and Account Deposit Service (Cash Conversion)" since January 2021. However, there are criticisms that, due to insufficient industry-wide promotion and inadequate support for digitally vulnerable groups, a large volume of points continues to expire every year.

Lee Yangsoo emphasized, "Even though the total amount of credit card points accumulated increases each year, a significant portion still expires, infringing upon consumer rights. Institutional improvements are needed so that consumers can actually benefit from the rewards they earn."