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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] SEOUL, Oct. 19 — Starbucks Korea, a subsidiary of retail giant Shinsegae Group, has accumulated nearly ₩2.6 trillion (approximately USD 1.9 billion) in prepaid card deposits since 2020, earning over ₩40 billion in interest income from the funds. However, lawmakers warned that the company operates outside financial regulatory oversight, as it is not registered as an electronic financial service provider.
According to data obtained by Rep. Kang Min-kuk of the ruling People Power Party from the Financial Supervisory Service (FSS), Starbucks Korea recorded 81.13 million prepaid transactions between 2020 and August 2025, totaling ₩2.625 trillion in recharges. The company’s prepaid top-ups surged from ₩184.8 billion in 2020 to ₩660.3 billion in 2024, with ₩454.4 billion already recorded by August 2025.
Unused prepaid balances have also risen sharply — from ₩180.1 billion at the end of 2020 to ₩401.4 billion as of August 2025, according to the report.
The lawmaker’s office pointed out that Starbucks Korea has been actively investing these customer deposits, generating ₩40.85 billion in interest income. Of the ₩1.789 trillion invested in cash-equivalent assets, about ₩1.082 trillion (60.5%) was placed in bank deposits, while ₩707.3 billion (39.5%) was invested in non-bank products, such as short-term money trusts and specific fund trusts.
In response, Starbucks Korea stated that all investments are made in low-risk products such as repurchase agreement (RP)-type short-term trusts, ensuring full principal and interest protection.
However, critics argue that the company’s practice raises consumer protection and regulatory oversight issues, as Starbucks Korea is not subject to FSS supervision. Under current law, prepaid balances that can only be used within Starbucks stores do not qualify as “prepaid electronic payment instruments” under the Electronic Financial Transactions Act, exempting the company from registration as an electronic financial service operator.
“Despite treating unused prepaid funds as liabilities and unearned revenue, Starbucks Korea invests them in non-bank trusts without customer consent,” said Rep. Kang.
“It is unacceptable that a company can earn ₩40 billion in returns from ₩2.6 trillion in customer deposits without any regulatory oversight. Financial authorities must urgently address this gap to protect consumers’ assets.”
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
