Consumer complaints erupt over discount app's sharp reduction in promised service

Consumer complaints have erupted over a local online discount app operator's abrupt decision to significantly reduce its much-touted financial reward service.

In recent months, Mergepoint has gained huge popularity in Korea for its discount service under which consumers can buy the so-called Mergepoints at a discount of 20 percent off the regular price and use them in about 60,000 places nationwide, like local retail chains, convenience stores and coffee shops.

It has attracted about 1 million members, with a daily 200,000 visitors, and posted an average 30 billion won ($25.6 million) in monthly transactions, according to industry data. (Yonhap)