Mobile carriers face complaints over membership points

Citizens pass by a retail store of telecom companies in Seoul. / Korea Times photo by Ko Young-kwon

By Jun Ji-hye

An increasing number of consumers are complaining about membership points programs offered by mobile carriers, saying the benefit packages tied to their phone plans change too often, while existing benefits tend to shrink year after year.

SK Telecom, KT and LG Uplus say they have consistently upgraded the benefit packages, including offering unlimited membership points, but users said they have not noticed any dynamic changes.

Membership points are provided by telecom companies on a yearly basis and can be used at affiliated stores including restaurants, bakery and coffee chains, movie theaters and theme parks to get discounts.

Some users, however, said they would prefer a reduction in their monthly mobile phone fees over the membership points that go away at the end of the year.

“I still have a lot of membership points, but I could not use them all in a year as I don't know how to use them effectively,” a KT subscriber living in Seoul said. “I hope to be given more discounts to my monthly phone plan rather than receiving useless membership points.”

Another user who subscribes to SK Telecom said, “I am a VIP member, and was told that unlimited membership points are offered. But I have rarely used the points this year as information of the benefits is too complex and changes too often.”

Recently, SK Telecom, the top mobile carrier, has reduced membership benefits given to those who buy one-day passes for amusement park Seoul Land.

KT has reduced benefits offering free size upgrades at Starbucks from once a week to once a month. The company also reduced discount rates at Paris Croissant and Paris Baguette.

In July, LG Uplus also reduced some benefits at Starbucks and Paris Baguette.

Amid frequent changes to the benefits, some users have had difficulties in finding all the information, eventually becoming uninterested in the use of the membership points and relinquishing them at the end of the year.

According to a report issued in June by local civic group Citizens United for Consumer Sovereignty, the total value of membership points, which expire every year, were estimated at 500 billion won ($432 million).

Besides users, officials at affiliated stores are also expressing complaints, claiming they have had to bear most of the costs required to give benefits to mobile phone users.

“It is regrettable that mobile carriers are promoting membership points as if they are giving the benefits. But in fact, such benefits are offered by affiliated stores,” an official at a Seoul-based food company said.

In response to mounting complaints, a telecom company official said, “We have consistently given prior notice to users whenever benefits are changed. We hope users will be able to make the most use of the points.”