As a boycott spreads over controversy surrounding the "Tank Day" marketing campaign, card issuers that partnered with Starbucks face a growing chance of shouldering partner risk.
According to the financial industry on the 25th, Woori Card, which launched the "Star Travel Woori Card" on the 25th of last month, and Samsung Card, which launched the "Starbucks Samsung Card" last year, are watching the situation. However, cancellation movements are not yet pronounced, according to reports. Shinhan Card was set to launch a Starbucks co-branded card in the first half but said it is reconsidering the launch timing in light of internal system checks and the fallout from the latest incident. All three companies are reportedly not at the stage of reconsidering their existing contracts.
Originally, Starbucks maintained an exclusive partnership with Hyundai Card for six years, but in the second half of last year it changed strategy and pursued tie-ups with multiple other card issuers.
Recently, as major card companies have found it harder to secure profitability in their core businesses due to lower merchant fees and tighter regulations on card loans, they have rolled out private-label credit cards (PLCCs) by expanding partners to include not only mega brands like Baemin and Musinsa but also big tech, financial firms, and luxury auto brands. Because the PLCC business effectively binds the two companies as a community, critics note that if controversy arises at a partner firm, the risk can flow directly to the card issuer.