Seoul: The combined balance of prepaid funds loaded onto Starbucks Korea cards reached 420 billion won (US$276 million) by the end of 2025, data revealed on Sunday, sparking concerns over a regulatory blind spot and prompting calls for stricter oversight by financial authorities.
According to Yonhap News Agency, Starbucks Korea's audit report indicated an 8.2 percent increase from 395 billion won a year prior. Despite accumulating substantial customer funds through prepaid cards, Starbucks Korea remains outside the scope of regulations that govern prepaid electronic payment instruments in South Korea. The law defines prepaid instruments as payment methods for goods or services from third parties, excluding Starbucks Korea's prepaid cards because the company serves as both the issuer and the place of use.
Experts note that refund options are significantly limited, requiring customers to use at least 60 percent of their remaining balance before being eligible for a refund. Meanwhile, Starbucks Korea has been urged by activists and consumers to implement an unconditional refund policy following a controversial marketing event that was criticized for its insensitivity towards the May 18 pro-democracy movement.
The coffee chain launched a tumbler promotion on May 18 with phrases like "Tank Day" and "Tak on the desk!" but withdrew it within hours. Critics argued that "Tank Day" alluded to the military crackdown on the 1980 Gwangju pro-democracy uprising, and "Tak on the desk!" recalled a notorious police explanation in the 1987 torture death of student activist Park Jong-cheol.
On May 18, 1980, the citizens of Gwangju rose against a military junta led by Army Gen. Chun Doo-hwan. Chun deployed troops to violently suppress civilians before ultimately seizing power through a coup. The government has since reviewed whether to revoke a commendation awarded to Starbucks Korea over the recent promotional event, but concluded the controversy had little direct connection to the company's activities cited for the award.
The Ministry of SMEs and Startups examined the possibility of revoking the Prime Minister's Commendation granted to Starbucks Korea last year. In November, Starbucks Korea received the commendation for its efforts to develop beverages using domestic agricultural products while supporting small merchants and local farms.
"As the recent issue has become a social controversy, we reviewed the honor granted to Starbucks Korea," a ministry official stated. "As we concluded that Starbucks Korea's contributions and the current issue are not directly related, we decided to exclude the case from the list of potential revocations," the official added.
Nonetheless, some argue that the government retains the ability to revoke the award due to the social backlash surrounding the controversy. According to government award guidelines issued earlier this year by the Ministry of the Interior and Safety, commendations may be revoked if recipients incite social controversy.