Amid boycott calls, Starbucks to offer unconditional refunds for 2 weeks starting June 1

Starbucks Korea announced it will temporarily relax its refund policy for its prepaid charging cards, offering unconditional refunds for two weeks starting June 1. This move comes after consumer backlash and demands for refunds following controversy over the company's perceived downplaying of the May 18th democratization movement.

The company stated in a notice on May 26 that customers can request refunds for remaining balances regardless of the amount used, provided they go through the necessary system development. This decision follows Shinsegae Group's announcement that management is discussing improvements with relevant ministries and will promptly prepare measures.

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With a heavy sense of responsibility and a spirit of self-reflection, we have eased the criteria to minimize any inconvenience for customers who have recently requested refunds.

Previously, Starbucks' terms of service stipulated that customers must use at least 60% of their stored value to be eligible for a refund of the remaining 40% or less. Critics argued this policy unfairly pressured customers who no longer wished to use the brand due to corporate missteps, effectively encouraging further spending.

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We will continue to listen to various customer opinions regarding Starbucks card refund regulations and strive to improve inconveniences.

Under the temporary policy, Starbucks cardholders can apply for refunds via the Starbucks mobile app without meeting the 60% usage condition. Refunds are possible up to the account's maximum balance limit of 2 million won and will be processed within seven business days. For unregistered physical cards, customers can visit a store for a cash refund without any usage conditions. Temporary procedures are also in place for customers wishing to withdraw from Starbucks membership before June 1.

Starbucks stated that it is operating with a heavy sense of responsibility and a spirit of self-reflection, aiming to minimize inconvenience for customers requesting refunds. The company also pledged to listen to various customer opinions regarding its card refund policy and continuously work on improvements. The Korea Consumer Organizations Council had previously urged for a swift revision of the unreasonable refund policy for prepaid cards, calling for legal and institutional grounds to allow full refunds regardless of usage when consumers wish to boycott a brand due to clear corporate wrongdoing.

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We urge for the prompt improvement of the unreasonable refund regulations for prepaid cards and related systems that were revealed during the consumer boycott, and call for the establishment of legal and institutional grounds that allow full refunds of prepaid funds regardless of usage when consumers wish to boycott a brand due to clear corporate wrongdoing.