Starbucks Korea Sales Plunge After Controversial Campaign Tied to Gwangju Uprising

"A very significant drop" in sales was reported following the marketing misstep, which prompted a CEO dismissal, a public apology, and a government boycott.

Shinsegae Group reported a significant decline in sales at Starbucks Korea after the company launched a marketing campaign on May 18—the anniversary of the 1980 Gwangju Uprising—that evoked imagery associated with the military crackdown. The campaign led to the dismissal of the CEO, a public apology, and calls for a boycott from public officials.

Campaign Details

Starbucks Korea launched a promotion for its "Tank" tumbler series on May 18. The campaign was named "Tank Day" and used the date "5/18" in its promotional materials.

• The term "tank" references military vehicles used during the 1980 Gwangju Uprising.
• The campaign also used the phrase "thwack on the desk," which is associated with a 1987 cover-up of the torture death of student activist Park Jong-chol.

The use of these specific symbols and dates was widely interpreted as a direct and offensive reference to one of South Korea's most painful historical events.

Corporate Response

Shinsegae Group chair Chung Yong-jin dismissed Starbucks Korea CEO Son Jung-hyun and ordered the dismissal of the executive overseeing the campaign. Chung publicly apologized and asked the public not to direct anger at Starbucks staff.

• Starbucks Korea pulled the promotion and issued an apology, stating it would implement stricter internal reviews.
• The company said leadership accountability actions have been taken and an investigation is underway.
• Starbucks Global also apologized and launched its own investigation.

Senior executive Jeon Sangjin stated that no conclusive evidence was found that marketing employees intended to mock the movement. The company clarified that any employee found to have intended to ridicule protesters would be fired. According to Jeon, some employees refused to hand over smartphones during the internal review.

Sales Impact

A Shinsegae official stated that sales at Starbucks Korea have fallen sharply, with a "very significant drop" observed following the controversy.

Public and Government Reactions

The Gwangju-Jeonnam Memorial Coalition described the marketing as "clearly malicious mockery."

President Lee Jae-myung condemned the campaign, stating he was "outraged" and said those responsible must be held accountable. He described the campaign as "inhumane and disgraceful behavior."

The Mart Industry Labour Union demanded Shinsegae Group halt its "anti-historical far-right behavior."

Interior and Safety Minister Yoon Ho-jung announced that Starbucks products would no longer be used at government events.

Background

The Gwangju Uprising began on May 18, 1980, when paratroopers were deployed to suppress student-led protests against martial law imposed by Chun Doo-hwan. Victims' groups estimate hundreds were killed. Details, including the order to open fire, remain unconfirmed.

This is not the first time Shinsegae Group has faced controversy over political messaging:

• In 2022, Chung Yong-jin sparked controversy by posting "I hate communism" with "eradicate communism" hashtags.
• In 2023, he sent a congratulatory message to a conservative organization modeled on Turning Point USA, and Starbucks Korea provided free coffee at its event.