Refund demands surge after 'Tank Day' marketing controversy; balances up to 2 million won ($1,330) eligible for full reimbursement
![Starbucks Korea, which has faced criticism for allegedly disparaging the May 18 pro-democracy uprising, begins offering unconditional prepaid card refunds Monday. [Yonhap]](https://wimg.heraldcorp.com/news/cms/2026/06/01/rcv.YNA.20260527.PYH2026052714890001301_P1.jpg)
Starbucks Korea, battered by public backlash over its "Tank Day" marketing campaign, will temporarily offer full, no-strings-attached refunds on Starbucks card balances.
The company began accepting refund requests Monday and will continue through June 14, industry sources said. Under normal policy, customers must use at least 60 percent of their most recent top-up before reclaiming the remaining balance. During the two-week window, however, customers can receive a full refund of up to 2 million won ($1,330) regardless of how much they have spent.
Refunds are available through both the mobile app and physical stores. Cards registered in the app can be refunded directly through it, with the amount deposited into a designated bank account within seven business days. Unregistered, unnamed physical cards can be refunded in cash on the spot at any store.
Starbucks Korea has increased cash reserves at its stores in anticipation of higher-than-usual refund demand.
The move follows a surge in customer refund requests triggered by the "Tank Day" marketing controversy.
The backlash erupted after Starbucks Korea launched a tank-themed tumbler series on May 18 — the anniversary of the Gwangju pro-democracy uprising — under the name "Tank Day," using slogans including "Thud on the desk." Critics said the imagery and language evoked the deployment of military tanks during the 1980 uprising and recalled the 1987 torture and death of democracy activist Park Jong-chul.
As the controversy escalated, Shinsegae Group Chairman Chung Yong-jin issued two public apologies — on May 19 and May 26 — saying, "All responsibility lies with me. It is my fault." Starbucks Korea CEO Son Jeong-hyeon and other executives were dismissed.
Legal action has continued nonetheless. Three organizations representing victims of the May 18 uprising — the bereaved families association, the meritorious persons association and the wounded persons association — along with the May 18 Memorial Foundation and survivors and their families, have filed criminal complaints against Chung and former CEO Son. The complaints allege violations of the special act on the May 18 democratization movement and defamation, among other charges.
Industry observers say the refund offer goes beyond routine customer service and amounts to an emergency measure to restore brand trust, given that outstanding Starbucks prepaid card balances are estimated at around 400 billion won (about $266 million). A large-scale wave of refunds would further deepen the company's already declining sales, analysts warn.
Data from mobile analytics firm IGAWorks' Mobile Index show that estimated in-app payments on the Starbucks app fell 26 percent — from about 32.2 billion won ($21.4 million) to 23.7 billion won ($15.8 million) — in the week of May 18–24, when the Tank Day controversy broke, compared with the prior week.
betterj@heraldcorp.com
