South Korean Starbucks faces backlash over 'Tank Day' promotion, potential refund crisis looms

Starbucks Korea is facing a significant backlash and boycott after launching a promotion on May 18, the anniversary of the Gwangju Uprising, that some perceived as trivializing the historic pro-democracy movement. The promotion, reportedly dubbed 'Tank Day,' evoked imagery of tanks used during the military crackdown in Gwangju.

The controversy has escalated with legal action, as a lawyer has filed a motion with the Seoul Central District Court seeking a payment order to refund customer pre-payments. As of the end of last year, these pre-payments, held by Starbucks Korea through gift certificates and app balances, amounted to 427.56 billion won (approximately $310 million USD).

Starbucks Korea's parent company, Shinsegae Group, has issued an apology. However, critics, including the lawyer leading the refund effort, argue that the apology is insufficient and unfairly shifts blame to lower-level employees. Consumers are demanding unconditional refunds of all pre-paid balances, asserting that the company's actions warrant such a measure, regardless of existing regulations requiring a certain percentage of the balance to be used before refunds are permitted.

The situation has led to a noticeable decline in customers at some Starbucks locations in Gwangju, with one previously busy branch reportedly empty during peak hours. The controversy highlights the sensitivity surrounding historical events in South Korea and the potential impact of corporate marketing missteps.

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Although the apology was made by Shinsegae Group Chairman Jung Yong-jin, the apology was to push the blame onto the frontline staff.