Airline miles are a form of economic gain that users can accumulate by purchasing and using airline tickets. They can be used to pay for goods and services offered by airline companies.
Major overseas airlines allow unrestricted use of airline miles for purchasing airline tickets, etc., and also allow miles to be transferred or sold to others. In contrast, flag carrier airlines place complex restrictions on where and how airline miles may be used and as a result, the miles are often left unused. Unlike loyalty points for credit cards or mobile communications companies, there are few alternative products that may be purchased using airline miles and the conversion rate is low. Consequently, critics have continuously highlighted a need to improve airline miles schemes run by domestic airline companies.
However, not only is there a lack of legal grounds to compel airline companies to improve their schemes, but airline companies also do not disclose information on the accumulation and usage of their airline miles for trade secrecy reasons. This means that the transparency and reliability of the schemes cannot be guaranteed.
Accordingly, the Amendment stipulates that the Minister of Land, Infrastructure and Transport shall prescribe standards on the accumulation and use of airline miles, and require air transport service providers that operate an airline miles scheme to comply with the standards. It allows public officials affiliated with the Minister of Land, Infrastructure and Transport to investigate relevant documents, etc., when necessary for enforcement of the law, thereby aiming to improve airline miles schemes and actively protect the rights and interests of users of air transportation.

Details

A. Stipulate that the Minister of Land, Infrastructure and Transport shall prescribe standards on the accumulation and use of airline miles, including matters concerning the accumulation, use, transfer, trading, etc., of airline miles and the donation of and other uses for unused airline miles, to protect the rights and interests of users of air transportation. Require any air transport service provider that operates an airline miles scheme to comply with the standards (Article 61-3 newly inserted).
B. Prescribe that the annual aviation service report, which is published to protect users of air transportation and promote aviation services, shall include matters concerning statistics on the accumulation and use of airline miles for each airline company (Article 64, paragraph 2, subparagraph 6).
C. Allow the Minister of Land, Infrastructure and Transport to organize affiliated public officials to access the office, etc., of an aviation business operator, etc., to investigate relevant documents, facilities, equipment, etc., where particularly necessary to enforce this Act (Article 73).
D. Prescribe that any air transport service provider that fails to comply with the standards on the accumulation and use of airline miles shall be subject to a fine of up to 10 million won (Article 78, paragraph 3, subparagraph 16 newly inserted).

Standards on the accumulation and use of airline miles (Article 61-2)