Starbucks Korea is offering full refunds on prepaid card balances for a two-week period following a controversial marketing campaign [1].
The move follows significant consumer backlash over a promotion titled "5·18 Tank Day." By allowing customers to withdraw their funds without the usual usage conditions, the company aims to mitigate public anger and restore trust in the brand [1].
Under the current program, customers can request a 100% refund of their card balances [1]. The maximum refundable amount is capped at 2 million won per card [1]. A store notice said that "100% refund of the card balance is possible without any usage conditions" [1].
Customers may submit refund applications through the mobile app, with processing completed within seven business days [1]. The window for these requests remains open until June 14 [1].
This refund initiative comes at a time of high financial exposure for the company. Starbucks Korea holds approximately 400 billion won in total prepaid card balances [1]. The decision to waive standard restrictions suggests the severity of the public reaction to the "5·18 Tank Day" campaign, a move that deviates from typical corporate refund policies for prepaid credits.
“100% refund of the card balance is possible without any usage conditions”
The decision to offer unconditional refunds for balances up to 2 million won indicates a critical PR crisis for Starbucks Korea. Because the company holds 400 billion won in prepaid funds, this policy could lead to a significant short-term liquidity outflow if a large percentage of the customer base chooses to exit the ecosystem rather than continue spending.
