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Starbucks’ Korean sales fall after backlash to ‘Tank Day’ ad campaign

Starbucks’ Korean sales fall after backlash to ‘Tank Day’ ad campaign

Summary

Starbucks Korea saw a large drop in sales after a marketing campaign reminded people of a violent 1980 military crackdown on democracy protests, causing public anger. The local owner, Shinsegae Group, apologized, fired the Starbucks Korea head, and is investigating the issue while facing calls for boycotts.

Key Facts

  • The "Tank Day" campaign coincided with the anniversary of the May 18 Gwangju Uprising, when the military suppressed pro-democracy protests with tanks and troops.
  • Shinsegae Group owns Starbucks stores in South Korea through its subsidiary E-Mart.
  • The campaign caused anger because it was seen as insensitive to victims and families of the 1980 crackdown.
  • Shinsegae Group chairman Chung Yong-jin apologized publicly and asked people not to blame Starbucks employees.
  • The head of Starbucks Korea was fired due to the controversy.
  • Starbucks Global also apologized and started an investigation.
  • Sales have dropped sharply since the campaign began.
  • Government officials, including South Korea’s Interior and Safety Minister and President Lee Jae Myung, criticized the campaign and encouraged boycotts of Starbucks.
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