Pulling scattered credit card points into one screen and cashing them out is well documented by now. But where does “points expire after five years” actually come from? We went looking for the provision and could not find one. What we did find are the limits the law places on the terms themselves.
1. What do I get. Points scattered across card issuers can be pulled into one screen at the Credit Finance Association's integrated points service and paid out in cash, from a single point up.
2. What is the risk. We found no statute setting a point expiry — it is contractual. So this article does not say “the law sets five years.” What the law does constrain is the clause itself: a term unfairly disadvantageous to the customer is void (Terms Act art. 6), and a clause that was never explained cannot be relied on as part of the contract (same Act art. 3(4)).
3. Where do they go if they expire. Art. 68(2) of the Specialised Credit Finance Act answers that — points unused within their term may be donated to the association's foundation, and you are notified a month ahead only above 50,000 won. Say nothing for 30 days and that counts as consent (Decree art. 23-2).
4. So what do I do. Cash out the points nearest expiry first. If the issuer never explained the expiry term, the provision says it cannot be relied on — disputes go to the Financial Supervisory Service (1332).
Is the five-year expiry in the law
Commercial Act, Article 64 (Commercial Prescription) A claim arising from a commercial activity shall be extinguished by prescription if not exercised for five years, unless otherwise provided in this Act. However, where another statute provides a shorter period, that provision shall apply.
The number matches, but we could not confirm that this provision applies to card points. Article 64 covers “a claim arising from a commercial activity,” and whether a point balance is such a claim cannot be settled from the text alone. So this article does not say the law sets five years.
The closing sentence is worth noting too — “where another statute provides a shorter period, that provision shall apply.” Five is not always the final answer.
Actual expiry depends on each issuer’s terms and the type of point. The “expiring soon” figure on the enquiry screen is the reliable information.
Does contractual mean the issuer decides
If points live in the terms, then the law that governs terms applies to them.
Act on the Regulation of Terms and Conditions, Article 6 (General Principles) (1) A clause that loses fairness in violation of the principle of good faith shall be void.
(2) A clause providing any of the following shall be presumed to have lost fairness:
1. a clause unreasonably disadvantageous to the customer
2. a clause the customer could hardly have expected …
3. a clause restricting essential rights under the contract to the extent that its purpose cannot be achieved
Article 11 (Protection of Customer Interests) … a clause providing any of the following shall be void:
1. a clause excluding or restricting, without reasonable grounds, the customer’s statutory rights of defence or set-off
2. a clause depriving the customer, without reasonable grounds, of the benefit of a time limit …
| If a clause is | Result | Basis |
|---|---|---|
| Unfair, contrary to good faith | Void | Terms Act art. 6 |
| Unreasonably disadvantageous, unexpected, or restricting essential rights | Presumed unfair | |
| Depriving the customer of the benefit of a time limit without reasonable grounds | Void | Same Act art. 11(2) |
The word “presumed” in Article 6(2) does real work — fall into one of the three categories and you start from unfair. It reads as putting the burden on the business to show otherwise.
The “benefit of a time limit” in Article 11(2) means the advantage of having until a set date. A clause pulling that date forward without reasonable grounds is void, the provision says directly.
That said, whether a particular points clause falls within these is not something the text decides. We did not check case law or regulatory decisions.
Does a clause nobody explained still bind me
Act on the Regulation of Terms and Conditions, Article 3 (Drafting and Duty to Explain) (1) A business shall draft the terms so that customers can understand them easily … and shall clearly mark important content using symbols, colour, bold and large type and the like.
(2) On concluding a contract the business shall state the content of the terms clearly … and, if the customer requests, provide a copy of the terms.
(3) The business shall explain the important content of the terms so that the customer can understand it. Provided, that this shall not apply where explanation is markedly difficult owing to the nature of the contract.
(4) Where a business concludes a contract in violation of paragraphs (2) and (3), it may not rely on those terms as part of the contract.
- Paragraph (4) is the strongest sentence here — terms not stated and not explained “may not be relied on as part of the contract.” Not void — unenforceable.
- Paragraph (1) even prescribes how — “symbols, colour, bold and large type.” Burying something in small print sits awkwardly with that requirement.
- But “important content” is not defined in the provision. Whether a points expiry clause qualifies is something we do not assert.
- The proviso to paragraph (3) — “markedly difficult” — is an exception.
| What the Terms Act requires | If not done | Basis |
|---|---|---|
| Mark important content in symbols, colour, bold and large type | — | Art. 3(1) |
| State the terms clearly at signing and provide a copy on request | Cannot be relied on as part of the contract | Art. 3(2) |
| Explain important content so the customer understands | Art. 3(3) (proviso: unless markedly difficult) |
So what do you actually do
- Use the card association’s joint points enquiry to see every issuer’s remaining and soon-to-expire balances at once. Its process and screens are operational rather than statutory, so this article does not describe them.
- Deal with the “expiring soon” balances first — because expiry varies by the terms.
- Receive it into an account in your own name.
- A text or call demanding a fee is not part of the official process. If identity misuse worries you, see our identity theft check guide.
- Other kinds of unclaimed money do have statutory periods — see our unclaimed government money guide and unclaimed insurance guide.
The statutes do name “credit card points”
The previous edition said “we found no statute setting a point expiry.” That is still true — no provision sets the length. But opening the Specialised Credit Finance Business Act this time, the statutes do use the phrase “credit card points.” In two places.
Enforcement Decree art. 19-22(1)1 … provided that this excludes cases involving credit card points or other economic benefits provided on card use.
Act art. 68(2) A credit card issuer may, … where credit card points have not been used within their term of validity, donate to the foundation an amount equivalent to the value of those points (limited to the portion the issuer itself funded).
The second one matters. The Act uses the words “term of validity” — while never saying how long it is. It assumes a term exists and legislates what happens afterwards. So “the law says five years” is still wrong, and “the law knows nothing about points” is not right either.
Where expired points actually go
Article 67 lets the association set up a donation management foundation, and article 68 lays the road to it. What the provision sets is “may” — not a duty. And it is limited to the portion the issuer funded itself.
Art. 68(3) For amounts at or above a figure prescribed by Presidential Decree, the issuer shall notify the original holder one month before donating and obtain consent.
Enforcement Decree art. 23-2(1) That figure is 50,000 won.
What the notice must contain is in the Decree too (art. 23-2(2)): the amount, the intended donation date, the recipient, and “the fact that failure to object within 30 days is deemed consent.” It goes by letter, electronic document, email or telephone (para. 3).
The proviso in paragraph (4) is the most practical sentence here — “where the original holder does not raise an objection within 30 days of the notice, the holder is deemed to have consented.” Silence is consent.
The issuer writes the terms — but two regulators read them
We saw above that the Terms Act sets the limits. Who looks at them, and how, is also in the text.
Specialised Credit Finance Business Act art. 54-3 (amendment of terms)
(1) Report any new or amended financial terms to the Financial Services Commission within 10 days — or file in advance where they may materially affect users' rights or duties.
(2) Publish them on the website. (3) The association may issue standard terms; (4) those are filed with the FSC in advance.
(5) The FSC forwards them to the Fair Trade Commission.
(6) If the FTC finds a breach of arts. 6 to 14 of the Act on the Regulation of Terms, it may request corrective measures, and the FSC shall comply absent special grounds.
(7) The FSC may order the terms changed (after consulting the FTC).
This is where the earlier article 6 leads. “An unfairly disadvantageous clause is void” is not just a declaration — it has a route: FTC → FSC → change order. Whether any point clause has actually travelled it, we did not check.
One curiosity. Decree art. 19-22(1)1 makes a new set of terms with distinctive content subject to advance filing — then carves points and other economic benefits out of it. Subparagraph 2, covering amendments that narrow users' rights or widen their duties, carries no such carve-out. Adding points and cutting them read as being treated differently — though that is our reading of the structure, not an authoritative interpretation.
What is fixed by law and what is not
| Item | Confirmed in legislation? | Note |
|---|---|---|
| Point expiry period | Not found | Appears to be contractual |
| Cash-out availability and conditions | Not found | Varies by issuer and point type |
| Treatment of partner points (miles etc.) | Not found | Partner’s own terms |
| The limits on those terms | Confirmed | Terms Act arts. 3, 6, 11 |
| General commercial prescription | Confirmed (5 years) | Application to points unverified — Commercial Act art. 64 |
| Donating expired points | Confirmed | Credit Finance Act arts. 67, 68 — a “may” |
| Notice and consent threshold | Confirmed (50,000 won) | Decree art. 23-2 — 30 days' silence is consent |
| The supervisory route for terms | Confirmed | Credit Finance Act art. 54-3 — FTC notice, FSC change order |
The bottom three rows are what we filled in this time. What the law leaves alone is the expiry period; what it governs is the limits on the terms and what happens once the period has run.
The top three rows are the honest conclusion of this article. The widely quoted five years and the issuer-specific conditions are not confirmed in legislation, so we state no figures. What is reliable is the “expiring soon” figure on the enquiry screen and each issuer’s terms.
Questions that keep splitting opinion
Are points “my money”?
We could not settle this from the text. It turns on whether they are “a claim arising from a commercial activity” under Commercial Act Article 64, and we found no provision defining the legal nature of points. We do not assert an answer.
My points vanished and I never saw the terms
Terms Act Article 3(4) says a business that breached paragraphs (2) and (3) “may not rely on those terms as part of the contract.” Whether those conditions were actually met is a case-by-case question — if it is contested, take it up with the issuer and the supervisor.
Is there a fee?
We did not open any provision on fees. What is certain is to use the official channel, and that a text or call demanding a fee is not part of the official process.
Do simple-pay points show up too?
Which points the joint enquiry captures is not fixed by legislation. It is a matter of service scope, so this article lists none. Phone bill savings are covered in our MVNO guide.
How long before unused points disappear?
No statute sets the period. The “expiring soon” figure on the enquiry screen and each issuer’s terms are the real standard. Checking twice a year is a safe habit.
What happens after they go, though, is legislated. Art. 68(2) of the Specialised Credit Finance Business Act lets the issuer donate points unused within their term to the association's foundation, and above 50,000 won requires notice one month ahead — with no objection within 30 days deemed consent (Decree art. 23-2). Below 50,000 won the provision imposes no notice duty at all.
With card points, what the law fixes is not the expiry but the limits on the terms. Unfair clauses are void, and clauses never explained cannot be relied on.
Sources
- Ministry of Government Legislation, National Law Information Center — statutory text — Act on the Regulation of Terms and Conditions, Article 3 (Drafting and Duty to Explain). Source of “symbols, colour, bold and large type,” the duty to explain in paragraph (3), and paragraph (4), “may not rely on those terms.”
- Ministry of Government Legislation, National Law Information Center — statutory text — Same Act, Article 6 (General Principles). Source of “a clause that loses fairness … shall be void” and the three presumption categories.
- Ministry of Government Legislation, National Law Information Center — statutory text — Same Act, Article 11 (Protection of Customer Interests). Basis for voiding clauses that deprive the customer of the benefit of a time limit without reasonable grounds.
- National Law Information Center — statutory text — Specialised Credit Finance Business Act, arts. 67 and 68. Source for the donation management foundation, the donation of points “not used within their term of validity” (issuer-funded portion only) and the one-month notice and consent.
- National Law Information Center — statutory text — its Enforcement Decree, art. 23-2. Source for the 50,000-won threshold, the four items the notice must carry, the four permitted channels, and “no objection within 30 days is deemed consent.”
- National Law Information Center — statutory text — the same Act, art. 54-3. Source for the 10-day report, advance filing, publication and association standard terms, and for FTC notification → breach of Terms Act arts. 6–14 → FSC change order.
- National Law Information Center — statutory text — its Enforcement Decree, art. 19-22. Source for the “credit card points … economic benefits” carve-out in para. (1)1 and for subparagraph 2.
- Ministry of Government Legislation, National Law Information Center — statutory text — Commercial Act, Article 64 (Commercial Prescription). Source of “five years” and “where another statute provides a shorter period, that provision shall apply.” Application to points is unverified.
Where to check further
- Whether issuers actually donate, and how much. Art. 68(2) is a “may” — not a duty, and the text carries no issuer figures. Those would come from the association and each issuer's disclosures.
- Where the point expiry comes from. No statute sets the length, and whether Commercial Act art. 64's five years reaches points cannot be settled from the text — your issuer's points terms and the expiring-points figure on the Credit Finance Association's integrated card-point lookup are what actually apply.
- How “unfairly disadvantageous” is judged. Terms Act art. 6 sets no test in the text; it is decided case by case — the Fair Trade Commission's terms review and the Financial Supervisory Service (1332) will look at a specific clause.
- What remedy exists if points are refused. The provisions stop at voidness and non-reliance, with no restitution procedure — the complaints channel on FINE, the FSS consumer portal, and the Korea Consumer Agency (1372) mediate free of charge.
Written as of August 2026. All quotations are the statutory text as published by the National Law Information Center, and what we could not confirm is listed separately above. Expiry and cash-out conditions vary by issuer’s terms — treat the “expiring soon” figure on the enquiry screen as your standard, and take disputes to the issuer or the Financial Supervisory Service (1332). This article is general information, not legal advice.
