Earlier this year, a savings product quickly gained popularity among the 'frugal tech group.' The 'OKxElpoint Savings' was launched in collaboration with OK Savings Bank and Lotte Members. It is a short-term time deposit product with a 6-month subscription period, allowing customers to choose a monthly deposit amount ranging from 100,000 won to 300,000 won. The reason this seemingly ordinary product became popular is that it offers a maximum annual interest rate of 10%.
Lotte Members introduced this product in collaboration with OK Savings Bank to activate its integrated membership mileage 'Elpoint.' The base interest rate is 2% per year (before tax), but if customers choose to receive the principal and interest in Elpoint at the time of subscription, they can get an additional preferential interest rate of 8 percentage points, totaling 10%. Customers who choose to receive Elpoint and save 300,000 won each month for six months will receive Elpoint worth approximately 1.85 million won.
However, recently, financial consumers who received their points upon maturity have expressed dissatisfaction. It is stated in the product manual that the principal and interest are to be received in Elpoint, and that Lotte's affiliated companies, where Elpoint can be used like cash, were informed. The problem lies in the point conversion. Most financial consumers planned to convert Elpoint into other points, but the received Elpoint cannot be converted into other points.
Elpoint can be used at various affiliated stores partnered with Lotte Members, but it can also be converted into other points. It can be exchanged for various options, including department store gift certificates, Shinhan card, Hana Bank, Smile Cash, Naver Pay points, and Korean Air mileage. Since most of Lotte Members' partners are Lotte affiliates, they have increased usability through point conversion with other companies.
Financial consumers are pointing out that although they commonly convert Elpoint into various uses, it was not disclosed during product subscription that 'the received Elpoint cannot be converted into other points.' The difficulty in conversion means that the places where the points can be used are much more limited, resulting in lower usability, and they explain that if they had known this in advance, they would not have subscribed.
OK Savings Bank noted that they did not anticipate the consumer practice of converting Elpoint, but they argued that they clearly informed the usage locations. As the controversy intensified, OK Savings Bank recently posted a notice related to the product stating that conversion into other company points is not possible. Additionally, if customers refuse to receive Elpoint, they are offering a basic interest rate of 2% to be paid out in cash.
However, frugal tech investors expressed that they did not open savings accounts just to receive 2% interest, and they are still feeling upset. Some investors have shared their situation in group chat rooms or filed complaints with the Financial Supervisory Service. An official from OK Savings Bank stated, "The guidance procedures, including listing the usage locations on the product detail page, have been carried out without issue," and added, "Considering the consumer inconvenience that has arisen after maturity, we are currently facilitating cash conversion for customers who wish to receive cash at the applicable interest rate equivalent to 'receiving cash' as indicated by Lotte Members."