Starbucks Korea prepaid balances top $28 mil. amid regulatory blind spot

The combined balance of prepaid funds loaded onto Starbucks Korea cards stood at 420 billion won ($276 million) as of the end of 2025, data showed Sunday, raising concerns over a regulatory blind spot and prompting calls for tighter supervision by financial authorities.

According to Starbucks Korea's audit report, the amount marked an 8.2 percent increase from 395 billion won a year earlier.

Despite holding a massive amount of customer funds loaded onto prepaid cards, Starbucks Korea is not subject to regulations governing prepaid electronic payment instruments.

Under South Korean law, prepaid instruments refer to payment methods used to purchase goods or services from third parties, which excludes Starbucks Korea's prepaid cards because the company acts as both the issuer and place of use.

Experts say refunds are effectively limited because customers must use at least 60 percent of the remaining balance before requesting a refund.

Starbucks Korea, meanwhile, has faced calls from activists and consumers to offer an unconditional refund policy following its recent controversial marketing e