Starbucks Korea’s chief executive, Sohn Jeong-hyun, was terminated following a controversial “Tank Day” promotion launched on the anniversary of the Gwangju Uprising crackdown, sparking widespread public outrage and calls for boycotts. The incident occurred in South Korea on Monday, with the coffee chain quickly retracting the campaign and issuing apologies.
Context of the Gwangju Uprising
The “Tank Day” promotion’s timing coincided with the 44th anniversary of the Gwangju Uprising, a pivotal event in South Korea’s modern history. In May 1980, the military government under Chun Doo-hwan deployed tanks and troops to violently suppress pro-democracy demonstrators in the city of Gwangju.
Estimates suggest hundreds of civilians were killed during the crackdown, which also involved documented instances of rape and sexual assault by soldiers. The Gwangju Uprising is now a symbol of national trauma and a sacred commemoration of South Korea’s struggle for democracy, frequently depicted in films and television.
The Controversial Promotion
Starbucks Korea launched a promotion for its “Tank Series” drink tumblers, advertised as having a “spacious volume.” The campaign featured the English phrase “Tank Day.” Many South Koreans interpreted this as a direct and insensitive reference to the military vehicles used during the Gwangju massacre.
Adding to the controversy, promotional materials included the Korean phrase “tak on the table!” The word “tak” sounds similar to an object being forcefully placed or slapped down. In 1987, police used a similar phrase to explain the death of a student activist in custody, claiming the activist died after an interrogator slapped a table, when in reality he had been tortured to death. This connection further fueled public anger.
Swift Retraction and Apologies
The backlash was immediate and severe. Social media platforms were flooded with calls to boycott Starbucks Korea and its parent company, Shinsegae. South Korean President Lee Jae-myung publicly condemned the campaign, calling it an “insult to the victims and the bloody struggle” and “inhumane behavior.” He questioned the company’s judgment, stating it denied the nation’s values of human rights and democracy.
Starbucks Korea swiftly rolled back the “Tank Day” promotion within hours of its launch. Shinsegae, which holds a majority stake in Starbucks Korea through its subsidiary E-mart, issued an apology for the “inappropriate marketing.” The company announced the termination of CEO Sohn Jeong-hyun and pledged to investigate internal approval processes for marketing content across all its affiliates.
Starbucks’ US headquarters also issued an apology, acknowledging that while unintentional, the incident “should never have happened.” The company recognized the deep pain and offense caused, particularly to those who honor the victims and the country’s democratization movement.
Corporate Structure and Oversight
Shinsegae’s group chairman, Chung Yong-jin, described the campaign as an “inexcusable mistake that trivialized the suffering and sacrifices” of those who fought for democracy. He committed to a thorough review of marketing approval procedures.
It is important to note that Starbucks Coffee Company, headquartered in the US, no longer directly operates Starbucks in South Korea. Shinsegae’s E-mart owns a 67.5% controlling stake, with the remainder held by Singapore’s sovereign wealth fund GIC. This means operational and marketing decisions largely fall under Shinsegae’s purview.
Implications and Future Watch
The incident highlights the critical importance of cultural sensitivity and historical awareness in global marketing campaigns. For companies operating in South Korea, understanding the significance of events like the Gwangju Uprising is paramount to avoid alienating consumers and damaging brand reputation.
The swift termination of the CEO and the apologies from both the local subsidiary and the US headquarters signal a recognition of the severity of the misstep. Consumers will be watching closely to see if Shinsegae’s promised review of marketing processes leads to tangible improvements and prevents similar cultural insensitivities in the future. The incident could also lead to increased scrutiny of marketing practices by other foreign brands operating in South Korea.
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