Chairman Joo Byungki Warns Starbucks: "Mocking the May 18 Tragedy and Neglecting Consumer Rights Could Threaten Company’s Existence"

Appearing on YouTube’s 'Maebul Show', Direct Criticism
Fair Trade Commission Likely to Review Restrictive Prepaid Card Refund and Withdrawal Policies

Joo Byungki, Chairman of the Fair Trade Commission, stated on May 29 that if Starbucks Korea, which has recently faced intense criticism for marketing campaigns that mocked the May 18 Gwangju Democratization Movement, neglects global standards on universal human rights and consumer rights, the very existence of the company could be at risk.

Joo Byungki, Chairman of the Fair Trade Commission, speaking at the inauguration ceremony of the 3rd 2030 Advisory Group held last month. Fair Trade Commission. Photo by Yonhap News Agency

Appearing on the YouTube channel 'Choi Wook's Maebul Show' on this day, Chairman Joo emphasized, "Through this incident, companies must clearly recognize that Korea is an advanced democracy," and added, "In advanced nations, civil society and consumer actions are guided by universal human rights as the standard."

He further stressed, "Using the tragic experiences of our history for marketing that deceives consumers is an act that disregards fundamental consumer rights," and pointed out, "There are many cases where companies that ignored such standards have seen their business operations and very existence threatened even abroad."

'Tank Day', 'Bang the Desk'... Public Outrage Over Mockery of Historical Tragedies

Previously, Starbucks provoked a serious social backlash by using phrases like 'Tank Day' and 'Bang the Desk!' in its tumbler promotion during the May 18 Gwangju Democratization Movement memorial period. These expressions were criticized for evoking the deployment of military tanks during the May 18 movement and the 1987 torture and death of activist Park Jongcheol, thereby mocking and trivializing victims of state violence.

As the controversy rapidly spread online, sparking boycotts and causing difficulties for partner companies due to suspended orders, Starbucks responded by fully discontinuing the promotion and issuing an official apology in an effort to contain the fallout.

Chairman Joo also made it clear that he intends to take action regarding Starbucks’ strict prepaid card refund and membership cancellation policies, which have come under scrutiny during this incident. According to the current standard terms for new types of gift certificates, consumers must use at least 60% of the face value for certificates exceeding 10,000 won in order to receive a refund of the remaining balance. Starbucks’ rechargeable prepaid cards follow this standard, causing significant difficulties for consumers wishing to participate in the boycott by cancelling their memberships and obtaining refunds.

Regarding this, Chairman Joo noted, "In exceptional circumstances like this, current refund regulations can be perceived as a significant restriction for consumers," and explained, "Terms and regulations should apply not only to normal situations but also to cases where unusual liability arises, so they must be revised to meet consumer expectations by weighing both aspects."

He especially added, "We are closely reviewing internally whether there are aspects of the terms regarding the complex membership withdrawal process that need correction," and continued, "We believe there should be a new refund provision allowing immediate reimbursement of balances in cases where the business operator is clearly at fault."

Temporary Full Refund by Management: "A Relief... Will Establish Market Discipline"

However, he expressed relief at Starbucks’ decision to implement a temporary measure allowing full refunds of prepaid card balances, regardless of usage, from June 1 to June 14, in order to address public sentiment following the controversy. Chairman Joo said, "Given the tremendous public outrage, it is fortunate that Starbucks management responded by enabling consumers to immediately withdraw and receive full refunds through a temporary measure."

Finally, Chairman Joo reiterated the Fair Trade Commission’s firm response by emphasizing the economic policy stance of the administration based on popular sovereignty. He stated, "Establishing discipline and order in the market is the top priority for achieving sustainable fair growth and an economy where all classes grow together," and added, "Going forward, we will fundamentally block unfair practices that deceive consumers and strongly and proactively raise economic sanctions to advanced country standards to steer companies toward fair competition."

This content was produced with the assistance of AI translation services.