Starbucks experiences decline in Korean sales following backlash against ‘Tank Day’ advertising campaign
Starbucks Korea is facing a significant decline in sales following the backlash from a controversial marketing campaign that invoked memories of a deadly military crackdown during pro-democracy protests in 1980. According to the local operator, Shinsegae Group, this campaign, meant to commemorate the anniversary of the May 18 Gwangju Uprising, has resulted in mounting public outcry and criticism.
The Gwangju Uprising, a tragic event in South Korean history, witnessed the military deploying troops and tanks to suppress citizens advocating for democratic reforms. The marketing effort, referred to as the “Tank Day” campaign, is perceived by many as highly insensitive to the historical trauma experienced during that period, leading to widespread condemnation.
In response to the public sentiment, Shinsegae Group’s chairman, Chung Yong-jin, publicly apologized during a news conference, acknowledging the campaign’s failure to consider the emotional impact on victims and their families. In his address, he emphasized that the pain felt by the community was deeply concerning and implored the public not to direct their frustrations toward the front-line employees of Starbucks Korea.
The controversy escalated to the point where the head of Starbucks Korea was dismissed as part of the company’s accountability measures. Shinsegae Group has indicated that there has been a “very significant” decline in sales linked to the fallout from this incident, with an official confirming that while financial repercussions are currently not the primary concern, the loss is nonetheless significant.
Additionally, the company launched an internal investigation following accusations that employees may have intentionally sought to provoke those who advocate for democracy. Senior executives have pointed out ongoing inquiries into whether any employees acted with malicious intent. Jeon Sangjin, a senior executive from Shinsegae, mentioned that any team members found guilty of this behavior will face termination.
The campaign’s impact extends beyond company sales, as several public figures have called for a boycott of Starbucks products. Government officials, including Interior and Safety Minister Yoon Ho-jung, have declared that Starbucks will no longer be utilized at official events, condemning the campaign as “anti-historical behavior.” President Lee Jae-myung has also criticized the campaign, labeling it as a disgraceful display of insensitivity towards the core values of the nation.
As the situation develops, the community continues to grapple with the implications of this incident and its deep-rooted historical significance.
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