Starbucks headquarters joins apology as Shinsegae fires local chief and moves to contain fallout
Shinsegae Group Chair Chung Yong-jin on Tuesday issued a formal apology over Starbucks Korea’s controversial “Tank Day” marketing campaign, vowing to overhaul the retail conglomerate’s decision-making processes.
“Starbucks Korea, an affiliate of Shinsegae Group, yesterday conducted an unforgivable, inappropriate marketing campaign that should have never occurred,” he stated. “As a result, it inflicted a deep wound upon the souls of those involved in the May 18 Democratization Movement, their bereaved families, and the broader public. On behalf of (Shinsegae Group), I extend my deepest apologies.”
Emphasizing that there were no excuses for disrespecting the pain and sacrifice of those who dedicated themselves to Korean democracy, Chung pledged to accept full responsibility.
To prevent such future incidents, the Shinsegae chief announced that the company would thoroughly investigate how the “Tank Day” promotion was initiated and approved, promising transparent disclosure of the findings. He further stated that the group will reexamine the content review process across all affiliates and establish specific standards for screening procedures.
“To foster strict historical consciousness and uphold ethical standards, we will provide comprehensive training to all executives and employees, myself included,” Chung affirmed.
Starbucks’ Seattle headquarters confirmed to The Korea Herald that it is taking the matter extremely seriously.
“We are profoundly sorry for an unacceptable marketing incident in Korea that referenced and tragically coincided with May 18, the commemoration of the Gwangju Democratization Movement — a day of immense historical and human significance,” a Starbucks spokesperson stated.
“While unintentional, this egregious error should never have occurred. We acknowledge the deep pain and profound offense this has caused, particularly to those who honor the victims, their families, and all who contributed to Korea’s journey towards democratization.”
The spokesperson further noted that Starbucks is implementing more robust internal controls, stricter review standards, and enhanced company-wide training to prevent any recurrence of this nature.
“We sincerely apologize to the citizens of Gwangju, to all those impacted by this tragedy, and to our valued customers and communities,” the official conveyed.
Starbucks Korea faced widespread condemnation on Monday after launching a tumbler promotion campaign featuring the contentious phrases “Tank Day” and “Bang on the desk.”
The “Tank Day” expression notoriously invoked the military tanks used to suppress the Gwangju Democratic Uprising on May 18, 1980, under the orders of Gen. Chun Doo-hwan. Meanwhile, “Bang on the desk” reminded many of the military dictatorship’s attempt to conceal the death of Park Jong-chul, a student democratization activist who tragically died from torture in 1987.
Starbucks Korea promptly withdrew the controversial promotion just hours after its launch, issuing an apology and acknowledging the phrases were entirely inappropriate. Subsequently, then-Starbucks Korea CEO Son Jeong-hyun released a formal apology, but he was swiftly dismissed by Chung.
President Lee Jae Myung strongly criticized the coffee chain’s marketing campaign Monday evening, expressing profound anger over the company’s severe misconduct.
“On the solemn anniversary of the May 18 Gwangju Democratic Uprising, how could there be a ‘May 18 Tank Day’ event that so blatantly insults the bloodstained struggle of the Gwangju victims and citizens?” Lee questioned in a post on X.
“(Those responsible) should be held fully accountable with appropriate moral, administrative, legal, and political responsibility.”
Shinsegae Group Vice President Kim Soo-wan visited the May 18 Memorial Culture Center in Gwangju to deliver an apology in person, but organizations commemorating the democratization movement declined the meeting. Representatives from May 18 organizations stated they could not accept an apology without a clear understanding of how the incident occurred.
The shares of Emart, which holds a 67.5 percent stake in Starbucks Korea, experienced a drop of more than 6 percent amid the controversy, trading at 92,900 won ($61.68) per share as of 2 p.m. Emart functions as a core retail arm of Shinsegae Group, with Chair Chung holding a 28.85 percent stake.
This recent backlash emerges as Shinsegae Group is making substantial investments, totaling approximately 4 trillion won, in various development projects across Gwangju. These projects include an expansion of its department store and the construction of a Starfield shopping and leisure complex.
“Negative public sentiment in Gwangju could directly jeopardize Shinsegae Group’s local development projects,” an industry official commented. “The group may therefore feel compelled to implement unusually strong measures to prevent the controversy from escalating further.”
