(Starbucks)
Card companies in South Korea are scrambling to assess the fallout from a growing boycott campaign tied to Starbucks Korea’s recent “Tank Day” marketing controversy.
According to industry sources on Sunday, Shinhan Card said it is reconsidering the launch timing of a planned Starbucks-affiliated credit card that had been scheduled for the first half of this year. The company said it is reviewing internal systems and monitoring the impact of the controversy before proceeding.
Woori Card, which launched the “Star Travel Woori Card” last month, and Samsung Card, which rolled out the “Starbucks Samsung Card” last year, are also closely watching the situation, industry officials said. None of the companies are currently considering revising their existing agreements with Starbucks.
Starbucks had maintained an exclusive partnership with Hyundai Card for the past six years before shifting strategy in the second half of last year to work with multiple card issuers.
The controversy erupted before the expanded partnership strategy had fully stabilized, leaving participating card firms facing unexpected reputational risks tied to the coffee chain.
Private-label credit card products are widely used by card issuers to attract loyal customers of partner brands by concentrating rewards and benefits around a single company. But the structure also leaves financial firms vulnerable when controversies surrounding partner brands trigger public backlash.
“Unlike general co-branded cards that spread benefits across multiple merchants and naturally diversify risk, PLCC products are heavily concentrated on a single brand,” an industry official said. “When boycott campaigns or controversies hit the partner company, the card issuer inevitably suffers alongside it. The latest issue could partially weigh on card companies’ earnings.”
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