Two-week full refund window ran from June 1 to June 14

A Starbucks prepaid card. [Photo by Jung Ho-won]
A Starbucks prepaid card. [Photo by Jung Ho-won]

Starbucks Korea's temporary full-refund policy for prepaid card balances — introduced in response to a consumer boycott — ended Sunday.

Starting Monday, customers must spend at least 60 percent of a prepaid card's loaded balance before they can claim a refund on the remainder, reverting to the previous standard, according to the retail industry.

Starbucks Korea introduced the temporary measure after its "Tank Day" promotional event, held on the anniversary of the May 18 pro-democracy uprising, sparked controversy and fueled calls for unconditional refunds. From June 1 through June 14, the company allowed customers to reclaim up to 2 million won (about $1,320) in prepaid balances without conditions.

The policy expired at midnight Monday.

Customers who want a refund on a loaded card must now have used at least 60 percent of the balance. Cards that have never been used are an exception: those can be canceled and fully refunded within 14 days of loading.

Refund requests submitted through the app are processed within seven business days and credited to a designated bank account. In-store refunds are available immediately upon presenting the Starbucks card.

The rules follow Korea Fair Trade Commission regulations, which allow consumers to demand a refund on the remaining balance of a monetary gift certificate once they have used at least 60 percent of its face value. For cards with a face value of 10,000 won or less, at least 80 percent must be spent before a refund is permitted.

The minimum-use threshold exists to prevent a practice known as "card cashing," in which someone loads a prepaid card, spends only a small amount, and then converts the rest back into cash — in effect using a credit card as a cash-advance vehicle.


jshan@heraldcorp.com