Consumer group urges Starbucks to fully refund prepaid balances

By Kim Dong-young Posted : May 22, 2026, 17:22 Updated : May 22, 2026, 17:22
Crushed Starbucks tumblers in front of a Starbucks shop in Gwangju/ Yonhap
 
SEOUL, May 22 (AJP) - The Korea National Council of Consumer Organizations urged Starbucks Korea to refund prepaid card balances in full and without conditions to customers who no longer wish to use the chain, as a consumer boycott over a controversial marketing campaign deepens.

The civic group on Friday also called on regulators and lawmakers to overhaul what it described as an unreasonable refund regime for prepaid stored-value cards.

Under Starbucks' current terms, customers must spend at least 60 percent of a charged balance before the remainder can be refunded.

That threshold is rooted in the Fair Trade Commission (FTC)'s standard terms for new-type gift certificates and the Electronic Financial Transactions Act, which require users of fixed-amount vouchers to spend at least 60 percent — or 80 percent for vouchers worth 10,000 won ($6.59) or less — before reclaiming the balance.

"Starbucks must improve its system so that refunds can be processed without visiting a store, easing the burden on store staff," the council said in a statement, adding that the FTC and the National Assembly should swiftly amend the relevant rules.

The backlash erupted after Starbucks Korea launched its "Tank Day" promotion on May 18, the 46th anniversary of the Gwangju Democratization Movement, using slogans including "tap on the desk" — phrases critics say evoked the 1980 military crackdown in Gwangju and the 1987 torture death of student activist Park Jong-chul.

The boycott has since spread to other Shinsegae affiliates and prompted a surge in app deletions and prepaid card refunds. Starbucks Korea's cash and cash equivalents stand at about 137.4 billion won, equivalent to roughly 32 percent of its prepaid liabilities — meaning available cash could be exhausted if just one in three customers demanded refunds simultaneously.

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