Starbucks Korea ‘Tank Day’ Promotion Sparks Sales Collapse, Exec Ousted
SBUX•Starbucks Korea’s ‘Tank Day’ tumbler promotion on May 18—the Gwangju Uprising anniversary—provoked consumer outrage, forcing Shinsegae Group chairman Chung Yong-jin to apologize and fire the local head. The backlash triggered a very significant sales drop in South Korea and dragged Shinsegae shares down over 2%.
1. Promotion Misstep and Backlash
Starbucks Korea rolled out a ‘Tank Day’ tumbler on May 18—the Gwangju Uprising anniversary—drawing intense criticism for insensitivity toward a pivotal pro-democracy event and sparking widespread customer protests.
2. Leadership Response and Firing
Shinsegae Group chairman Chung Yong-jin issued a full apology, took personal responsibility for the error and announced the dismissal of Starbucks Korea’s country head to restore public trust.
3. Sales Impact and Market Reaction
Company insiders report a very significant slump in South Korean store sales following the controversy, while Shinsegae shares fell over 2% intraday and E-Mart shares posted gains amid swift corporate corrective measures.
