Starbucks Korea CEO Fired Over Controversial Tank Day Campaign
What began as a tumbler discount promotion has ballooned into one of South Korea’s most stunning corporate crises of the year. The head of Starbucks Korea was dismissed by South Korean food giant Shinsegae Group after a promotional campaign generated public outrage on the anniversary of pro-democracy protests.
The Promotion That Crossed a Sacred Line
Starbucks Korea is running a promotion called “Dante·Tank·Nasoo Day” from Sunday morning, showcasing “Colorful Tank Tumbler Set” and “Tank Duo Set.” Promotional materials on the Starbucks Korea app for May 18, titled “Tank Day,” with the slogan “Slam on the desk!”
It could not have been more inflammatory. May 18 is the 46th anniversary of the Gwangju Democratization Movement, one of the worst days in South Korea’s history, when military tanks were sent out against civilian pro-democracy demonstrators in 1980 and unleashed a bloody bloodbath.
Critics said that the phrase “Tank Day” insulted the 1980 revolt in Gwangju, when military tanks were used against people, and “bang the desk” looked to parody the 1987 torture murder of student activist Park Jong-chul.
The outcry was fast and furious. The online designation of May 18 as “Tank Day” set up a flood of charges that it is a so-called Ilbe-style remark that degraded the May 18 Gwangju Uprising. Some netizens said, “The event seems to be created just for the purpose of using ‘Tank Day’ on May 18.” Ilbe is a far-right internet group in South Korea known for its history of harsh and degrading speech.
CEO Dismissed the Same Day
The answer came quickly and firmly. Shinsegae, the U.S. coffee chain’s South Korean licensee, stated in a statement that Starbucks Korea president Sohn Jeong-hyun was terminated for “inappropriate marketing,” Chairman Chung Yong-jin said.
“This incident has nothing to do with Chairman Chung Yong-jin’s intention,” claimed an official of Shinsegae Group. “Chairman Chung took the decisive step to fire CEO Son to dispel any misunderstanding,” the official said, adding, “We will find and discipline all who were involved in this matter and find out through an internal investigation how such a plan was made.”
Apologies From Korea — and Seattle
Starbucks Korea apologized on behalf of Son on Sunday evening at 7 p.m. and said: “We bow our heads and offer our deepest apologies to the spirits of the May 18 Democratization Movement, May 18 organizations, the citizens of Gwangju, the bereaved family of the late Park Jong-chul, and all those who paved the way for democracy in Korea, all of whom were deeply hurt by today’s marketing that included inappropriate expressions regarding the May 18 Democratization Movement.”
The apology soon reached all the way to Starbucks’ world headquarters. Starbucks headquarters in Seattle called it an “unacceptable marketing incident,” saying the company was “deeply sorry for an unacceptable marketing incident in Korea that referenced and coincided with May 18, the commemoration of the Gwangju Democratization Movement — a day of deep historical and human meaning. The promotion was promptly discontinued, the coffee chain said, and leadership accountability measures had been adopted. A complete investigation is ongoing, the company added.
Presidential Condemnation
The dispute has hit the upper echelons of South Korean politics. President Lee Jae-myung slammed Starbucks Korea’s “Tank Day” marketing campaign on the anniversary of the May 18 Gwangju Democratization Movement, saying he was “outraged by the inhumane, depraved behavior of these low-grade peddlers who deny the values of the Republic of Korea’s community, basic human rights, and democracy.” President Lee went on to insist that “moral, administrative, legal and political responsibility commensurate with this must be taken”.
Corporate Fallout and Broader Questions
Korea’s retail giant Shinsegae Group maintains a 67.5 percent ownership in Starbucks Korea through its affiliate E-Mart. The event raises major issues about the brand’s internal review and approval processes — and how such a fundamentally offensive campaign to Korean historical memory could have gotten through numerous layers of corporate control without being recognized.
The debate was around a Starbucks Korea tumbler campaign slated to be held from May 15 to 26. Many Koreans are calling for more than the firing of one executive after it ran at all — even for a short time — on May 18.
Sources:
- Seoul Economic Daily — CEO Firing Report
- The Korea Herald — Starbucks HQ Apology
- US News — Starbucks Korea Head Fired
- Seoul Economic Daily — President Lee’s Statement
- ROK Drop — Background & Analysis
