Stock prices for South Korean retail company Shinsegae dropped on Tuesday following a public apology from Chairman Chung Yong-jin regarding a controversial Starbucks Korea marketing effort that appeared to reference a deadly 1980 military assault on democracy activists.
The retail company, which runs Starbucks operations in Korea, encountered significant public criticism over its “Tank Day” promotional campaign featuring tumblers on May 18, coinciding with the nation’s remembrance of the student-led Gwangju Uprising from May 1980.
“I take it very seriously that Starbucks Korea’s inappropriate marketing hurt and angered many people,” Chung said. “I will take all responsibility for the incident.” While Shinsegae stock initially rose Tuesday morning, it subsequently declined 2.6% after the chairman’s statement.
Military forces and tanks were deployed by the military dictatorship of Chun Doo-hwan to suppress the demonstrations, resulting in an estimated hundreds of deaths and disappearances.
Last week, Shinsegae dismissed the leader of Starbucks Korea following an apology for “inappropriate marketing.” The global Starbucks corporation has also issued an apology and announced the start of an investigation.
In response to the controversy, South Korea’s Interior Minister announced that his department would cease purchasing products from businesses that “make light” of the nation’s democratic heritage.
According to company documents, Starbucks Korea ownership is split between E-Mart at 67.5% and Singapore’s sovereign wealth fund GIC at 32.5%.
