Starbucks Korea continues to face severe public backlash and boycott campaigns following its controversial "Tank Day" promotion, which coincided with the anniversary of the 1980 Gwangju Democratic Uprising. The campaign, which was canceled shortly after launch, has drawn widespread criticism for its perceived insensitivity to South Korea's historical trauma. Shinsegae Group Chairman Chung Yong-jin has issued multiple apologies, including dismissing senior executives and promising systemic reforms, but public outrage persists with calls for his resignation. The incident has sparked nationwide protests and significant sales declines in Starbucks' third-largest market.France 24+2
The campaign, which referenced the Gwangju uprising through insensitive terminology, has triggered widespread protests both in South Korea and among Korean communities abroad. Activists have been destroying Starbucks merchandise in Gwangju, while civil servant unions and government offices have joined boycott movements. Groups in Gwangju are demanding Chung's resignation, citing perceived insincerity in his apologies. The controversy underscores the deep emotional scars left by the 1980 military crackdown.France 24+4
Chung Yong-jin has issued his second public apology since the controversy began, admitting the company failed to properly vet the marketing campaign. Internal investigations revealed no deliberate intent to insult the movement but highlighted severe procedural failures. Despite dismissing the Starbucks Korea CEO and other executives, public trust continues to erode with growing demands for Chung's resignation. Veterans Minister Kwon Oh-eul has also criticized the promotion, calling for public sanctions and reviewing the ministry's scholarship agreement with Starbucks.Yonhap News Agency+3
The incident has exposed critical gaps in Starbucks' understanding of South Korea's historical trauma. The campaign's association with the May 18 Gwangju Democratization Movement has become a case study in marketing malpractice. Experts warn this could set back foreign brands' efforts in sensitive markets for years. The backlash has extended to Korean communities in the U.S., where protests have gained traction on platforms like MissyUSA.Yonhap News Agency+3
Starbucks Korea's sales have plummeted since the controversy began, with payments dropping by 26 percent. The company's prepaid card balances, totaling 420 billion won ($276 million), now face increased scrutiny as consumers demand refunds. Market observers note the crisis could impact Shinsegae Group's broader operations, with the controversy occurring just ahead of local elections in South Korea.Yonhap News Agency+3