A customer enters a Starbucks coffee chain outlet in Seoul, South Korea, 12 February 2025. Sales of SCK Co., the operator of Starbucks in South Korea, increased 5.8 percent from a year earlier to 3.11 trillion won (around US $2.14 billion) in 2024, with the number of its outlets nationwide rising above 2,000 for the first time since the launch of its first South Korean outlet in 1999. EPA/YONHAP SOUTH KOREA OUT Shinsegae Group, the retail conglomerate that licenses and manages the U.S. coffee chain in South Korea, said it had sacked Sohn Jeong-hyun, the head of Starbucks Korea, for carrying out "inappropriate marketing."
Sohn's dismissal came hours after Starbucks launched its "Tank Day" campaign on Monday promoting what it called its "Tank" line of tumblers with the tagline "put it on the table with a sound of 'Tak!'"
Monday also marked Democratisation Movement Day, which commemorates the student-led Gwangju Uprising of May 1980, and the campaign drew strong criticism in South Korea.
Hundreds of people are estimated to have died or gone missing when the military dictatorship of Chun Doo-hwan deployed troops and tanks to crack down on the protests. Many details remain unconfirmed, including who gave the order to open fire on the protesters. Chun finally stepped down in 1988 amid growing calls for democracy.
Critics also questioned the use of the phrase "tak" for echoing explanations by South Korean police in 1987 for the death of a student protester, who was found to have been tortured. At the time, police said the student died after investigators struck a desk making a "tak" sound, according to local media reports.
Reuters was unable to reach Sohn for comment and Starbucks Korea declined to make him available for comment, saying he had already left the company. The company has withdrawn the campaign.
CUSTOMERS DEMAND REFUNDS, CANCEL MEMBERSHIPS
Writing on X on Monday, South Korean President Lee Jae Myung said he was "enraged" by Starbucks' campaign and demanded it apologise to families of people killed during the uprising.
The campaign "tarnished the bloody protests of Gwangju citizens and the victims of the protests," Lee said, calling it the act of a "degenerate peddler."
Starbucks Korea posted a statement on its website apologising for the promotion while Shinsegae Group Chairman Chung Yong-jin also issued a public apology.
"I deeply bow in apology as the representative of the group," Chung said. The marketing "deeply hurt the public, the bereaved families, and the victims of the May 18 demonstration."
Starbucks Korea's apology, however, drew more than 2,800 comments on social media, many of them critical, and internet users posted photos online of them getting refunds on prepaid Starbucks card balances and cancelling their app memberships with the coffee chain.
Some also posted videos of themselves destroying Starbucks tumblers, mugs and other merchandise.
Shares of Shinsegae's discount retail chain E-Mart 139480.KS, which owns a 67.5% stake in Starbucks Korea that is now called SCK Company, ended down 5.5% at the close of trade in Seoul.
Starbucks Global also issued a statement on Tuesday, saying it was sorry about what had happened and that an investigation had begun.
"We sincerely apologize to the people of Gwangju, to those impacted by this tragedy, and to our customers and communities," a spokesperson at Starbucks Global said in an email to Reuters.
"Leadership accountability actions have been taken, and a thorough investigation is underway," the spokesperson said. "We are implementing stronger internal controls, review standards, and company-wide training to ensure this does not happen again."
Shares of Starbucks Korea owner E-Mart tumbles https://reut.rs/4eQqAZB
(Reporting by Heejin Kim; Additional reporting by Joyce Lee; Editing by Sam Holmes and Kate Mayberry)