DistantNews
Support us
🇰🇷 South Korea /Culture & Society

5.18 groups demand National Pension Service act against Starbucks Korea over 'Tank Day' controversy

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • 5.18 democracy movement groups urged the National Pension Service to exercise its shareholder rights against Starbucks Korea.
  • The groups cited Starbucks Korea's controversial 'Tank Day' event, which they say defamed the 5.18 democracy movement and harmed the company's value.
  • They requested the pension fund, a major shareholder in Starbucks Korea's parent company E-Mart, to designate Shinsegae Group as a 'closely managed company' and initiate shareholder proposals.

Groups commemorating South Korea's 5.18 democracy movement are demanding that the National Pension Service, a significant shareholder in Starbucks Korea's parent company, take action against the coffee chain. The call comes after Starbucks Korea's "Tank Day" event, which the groups argue defamed the historical movement and damaged the company's reputation and shareholder value.

As a public trustee, we strongly urge you to take immediate and substantial sanctions and shareholder actions.

— 5.18 democracy movement groupsIn a formal request to the National Pension Service regarding Starbucks Korea's controversial 'Tank Day' event.

The 5.18 Democratic Movement Descendants Association, Injured Persons Association, and Meritorious Persons Association, along with the 5.18 Memorial Foundation, formally requested the National Pension Service on May 29 to exercise its shareholder rights. They emphasized the pension fund's duty as a public trustee to impose "immediate and substantial sanctions and shareholder actions."

The defamation of the 5.18 democracy movement by Starbucks Korea has led to a nationwide boycott, severely damaging corporate and shareholder value.

— 5.18 democracy movement groupsDescribing the impact of the 'Tank Day' event in their communication with the National Pension Service.

The groups outlined four specific demands: immediate designation of Shinsegae Group as a "closely managed company," initiation of shareholder proposals to hold management accountable, readjustment (reduction) of investment in Starbucks Korea, and the immediate convening of a trustee responsibility committee for public hearings. They argued that the "anti-historical actions" and "failed risk management" by Starbucks Korea's leadership directly result in losses of public assets.

The incompetence of management, which has neglected anti-historical acts and failed in risk management, is directly leading to the loss of national assets.

— 5.18 democracy movement groupsHighlighting management failures in their appeal to the National Pension Service.

Furthermore, the organizations warned that any passive or lukewarm response from the National Pension Service would be seen as condoning an act that defames South Korean democracy. They vowed to take "stern measures" to ensure public assets do not fund companies that undermine democracy.

If the National Pension Service condones this situation or shows a lukewarm attitude, it is tantamount to agreeing with an act that defames South Korean democracy.

— 5.18 democracy movement groupsWarning about the consequences of inaction by the pension fund.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog