Controversy Brews Over Starbucks Korea's 'Tank Day' Marketing

Shares in the South Korean retail giant Shinsegae dropped following an apology from Chairman Chung Yong-jin over a controversial marketing campaign by Starbucks Korea, which the company operates in South Korea. The campaign, dubbed 'Tank Day,' coincided with the May 18 commemoration of the Gwangju Uprising, a 1980 pro-democracy protest violently suppressed by the military.

Chung expressed regret over the marketing misstep, emphasizing the severity of the public's reaction and taking full responsibility for the incident. Despite starting the day on a high, Shinsegae's stocks fell 2.6% soon after Chung's apology.

This marketing blunder led to the firing of Starbucks Korea's head last week, and Starbucks Global announced an investigation. In response to growing criticism, South Korea's Interior Minister pledged to cease offering products from companies trivializing the nation's democratic history. Starbucks Korea is majority owned by E-Mart with a significant minority stake by GIC.

(With inputs from agencies.)