Starbucks Korea CEO Dismissed After Controversial Campaign
SEOUL – The head of Starbucks Korea has been dismissed following a marketing initiative that ignited public outrage and calls for boycotts, stirring up painful memories of a violent military crackdown on pro-democracy protests in 1980.
Shinsegae Group, which licenses and oversees American coffee brands in South Korea, announced the termination of Son Jong-hyun due to “inappropriate marketing” practices.
This decision came shortly after the launch of Starbucks’ “Tank Day” campaign on Monday, promoting its “Tank” line of tumblers with the tagline, “Put it on the table with the sound of ‘Tank!'”
The timing of the campaign was particularly sensitive, coinciding with a commemoration of the pro-democracy movement related to the student-led Gwangju uprising in May 1980, a tragic event that faced strong backlash in South Korea.
It’s reported that hundreds of individuals were either killed or went missing when Chun Doo-hwan’s military regime deployed troops and tanks to suppress the protests.
Many details around the incident remain unclear, including who specifically ordered the firing on protesters. Chun eventually stepped down in 1988 amidst heightened demands for democracy.
Additionally, critics pointed out the use of the word “tank,” reminiscent of a police account from 1987 regarding the death of a student protester who had been tortured. According to reports, authorities stated that the student had died after an investigator made a “tap” sound on the desk.
While attempts to reach Son for comment were unsuccessful, Starbucks Korea chose not to provide further remarks, indicating he had already left the company. The campaign has since been withdrawn.
Reactions from Leadership and Customers
South Korean President Lee Jae-myung expressed his anger regarding Starbucks’ campaign in a post on X, calling for an apology to the families affected by the riots.
Lee criticized the promotion as “desecrating the bloody protests of Gwangju citizens and their victims,” labeling it the work of “depraved peddlers.”
Shinsegae Group Chairman Jeon Young-jin also issued an apology on his website, acknowledging the promotion’s impact. He stated, “On behalf of the organization, I bow my head in deep apology.” He recognized that the marketing “deeply hurt the people, families, and victims of the May 18 demonstrations.”
Despite the apology, Starbucks Korea’s statement drew significant criticism online, with over 2,800 negative comments. Many social media users shared images of themselves getting refunds for their prepaid Starbucks cards or canceling app memberships.
Some individuals even posted videos of themselves destroying Starbucks products, showcasing their discontent.
The shares of E-Mart, the Shinsegae discount retail chain with a 67.5% ownership of Starbucks Korea, which now goes by SCK Company, dropped by 5.5% by the end of trading in Seoul.
In response, Starbucks Global released a statement on Tuesday expressing regret over the incident and announcing an internal investigation.
“We sincerely apologize to the people of Gwangju, those affected by this tragedy, and our customers and communities,” a Starbucks Global representative stated in an email. “We are taking measures to ensure accountability among leaders and are conducting a thorough investigation to prevent future occurrences.” The spokesperson added that stronger internal controls and company-wide training are being implemented to ensure something similar doesn’t happen again.
