Starbucks Korea will provide unconditional refunds for all remaining balances on prepaid cards starting Monday [1].
The move comes as the company attempts to mitigate a consumer boycott triggered by the “5·18 Tank Day” protest. By removing previous restrictions on how much of a balance must be spent before a refund is granted, the company is signaling a concession to public pressure.
Customers can process these refunds through the Starbucks mobile app or at offline stores [2]. The window for these unconditional refunds is open for two weeks, ending on the 14th of the month [1].
Under the new policy, the company will refund balances up to a maximum of 2 million KRW per card [1]. This represents a significant shift from previous company requirements. Previously, cards with balances over 10,000 KRW required at least 60% of the balance to be used before a refund was issued [1]. For cards with balances of 10,000 KRW or less, customers were required to use at least 80% of the balance [1].
The decision follows a public apology issued on May 26 by Jung Yong‑jin, the chairman of Shinsegae Group and owner of Starbucks Korea [1]. The apology was a response to the heightened tensions and boycott demands following the protests.
"I will start again from the beginning so that we can regain the trust of the people by creating practical changes through action, not words," Jung said [1].
The company is now leveraging both digital and physical infrastructure to facilitate the exit of funds for dissatisfied customers. This approach aims to resolve the financial ties between the brand and consumers who have pledged to stop using its services.
“Starbucks Korea will provide unconditional refunds for all remaining balances on prepaid cards”
The removal of refund barriers is a tactical move to reduce consumer friction during a period of intense brand hostility. By allowing customers to recoup their funds without the previous 60% to 80% usage requirements, Starbucks Korea is attempting to prevent further escalation of the boycott and clear potential legal or regulatory hurdles regarding consumer rights during public disputes.
