Starbucks Korea is facing a severe scandal following a botched promotional event called Tank Day. The campaign, which aimed to sell tumblers, was widely perceived as mocking the victims of a deadly 1980 military crackdown on pro-democracy protesters. Although the promotion was quickly scrapped, public furor has persisted.
Chung Yong-jin, the chairman of Shinsegae Group and the local corporate majority owner, has issued two public apologies within two weeks. Top executives have addressed the sustained backlash, with the chairman specifically urging the public not to direct their anger toward the company's frontline staff and employees.
The company is now dealing with a boycott campaign and a significant decline in performance. Local operators reported a very significant drop in sales, and executives have warned of substantial declines in revenue as a result of the controversy.