Shinsegae Group said it will refund prepaid Starbucks card balances up to 2 million won per account regardless of the amount used [2].
The decision follows widespread consumer protests against a policy that required customers to spend at least 60% of their balance before qualifying for a refund [1]. The reversal aims to protect the brand image of Starbucks Korea and maintain cash liquidity as the company faces a boycott.
Under the new terms, the refund limit is set at 2 million won per account [2]. Customers who apply for these refunds via the mobile app will have their requests processed within seven business days [3]. These payments will be processed between the 1st and 14th of the following month.
Shinsegae Group, which operates the brand in South Korea, holds a 67.5% stake in Starbucks Korea through Emart [8]. The company has historically relied on the coffee chain as a significant source of revenue. In 2022, Starbucks Korea reported revenue of 3.238 trillion won and an operating profit of 173 billion won [4, 5].
For comparison, the parent entity Emart reported 2022 revenue of 29 trillion won with an operating profit of 3.225 trillion won [6, 7]. The current shift in refund policy comes as the company attempts to stabilize its relationship with a frustrated customer base that viewed the 60% usage threshold as an unfair restriction on their own funds [1].
“Shinsegae Group said it will refund prepaid Starbucks card balances up to 2 million won per account regardless of the amount used”
This policy reversal signals a vulnerability in Starbucks Korea's market position. By removing the usage threshold, Shinsegae Group is prioritizing short-term brand recovery and consumer sentiment over the retention of prepaid capital. The move suggests that the boycott had reached a scale where the risk of permanent brand damage outweighed the benefit of holding onto customer deposits.
