Starbucks Korea will provide full refunds for prepaid-card balances without requiring customers to meet minimum usage percentages [1, 2].
This policy shift follows a period of consumer complaints and a boycott targeting the company's restrictive refund rules. The move is an effort by the company and Shinsegae Group Chairman Jung Yong-jin to restore the brand's image in the South Korean market [1, 2].
Previously, the company required customers to use at least 60% of their prepaid balance before a refund could be issued [1, 2]. Under the new temporary guidelines, this condition will be removed entirely for a specific window of time [1, 2].
Customers can request refunds starting June 1 and ending June 14 [1, 2]. The refund limit is set at 2 million KRW per account [1]. Once an application is submitted, the company said the refund will be processed within seven business days [1, 2].
To facilitate the process, the company is offering multiple channels for requests. Users can apply through the Starbucks mobile app, while those with non-registered physical cards can request their funds in-store [1, 2].
The decision comes as the company faces increased pressure to align its consumer policies with local expectations. By removing the usage threshold, Starbucks Korea aims to resolve the tension with its customer base, and mitigate the impact of the ongoing boycott [1, 2].
“Starbucks Korea will provide full refunds for prepaid-card balances without requiring customers to meet minimum usage percentages.”
This reversal indicates that the consumer boycott in South Korea reached a critical mass, forcing a global brand to abandon a standard corporate policy in favor of local consumer satisfaction. The limited two-week window suggests a strategic 'reset' intended to clear liabilities and appease critics quickly rather than a permanent shift in the company's global financial terms for prepaid accounts.
