According to the Statistical Office and the Korea Consumer Agency, the size of the Korean point market was estimated to be around 20 trillion won in 2019, with an annual growth rate of more than 10%. The point system is being distributed across various industries, online and offline, due to the advancement of digital technology.
As the size of the point market expands, the discrepancies between providers and consumers regarding the point system are increasing. Points are a benefit to customers but are treated as a liability by businesses. Consequently, point providers may suffer from accounting issues and maintenance costs, while consumers who wish to use points like cash face limited places to use them and complex usage rules, diminishing the points' value.
To solve the limitations of the current point system, various technological introductions are being discussed, with 'blockchain' emerging as the most realistic solution.
The blockchain market, which has been gaining recent attention, is expected to grow at an average annual rate of 67.3% from 2018 to 2024, exceeding 30.691 trillion won. Among them, financial services integrated with blockchain are expected to grow the most, and the synergy with the point market cannot be ignored.