• Starbucks Korea experiences a "very significant" drop in sales due to backlash from a controversial ad campaign.
• The 'Tank Day' campaign evoked the violent 1980 military crackdown during pro-democracy protests.
• Shinsegae Group's chairman publicly apologized, taking responsibility for the incident.
• Internal investigations are ongoing to assess the management's role in the campaign's approval.
• The controversy has led to calls for boycotts and significant media scrutiny.

Starbucks Korea has encountered a "very significant" reduction in sales as a result of a marketing campaign that stirred public fury over its historical insensitivity. This campaign, termed 'Tank Day', coincided with the anniversary of the May 18 Gwangju Uprising, where the military violently suppressed pro-democracy protests, according to Reuters, Channel News Asia, and Al Jazeera.

In response to the backlash, Shinsegae Group chairman Chung Yong-jin issued a public apology, urging the public not to blame Starbucks staff for the company's inappropriate marketing. "I take it very seriously that Starbucks Korea's inappropriate marketing hurt and angered many people," Chung stated, affirming his willingness to accept full responsibility for the situation. According to Reuters, Channel News Asia, and Al Jazeera.

The marketing initiative was met with intense public criticism, leading to a sharp sales decline for Starbucks Korea, which is owned by the Shinsegae Group through its subsidiary E-Mart. A company official noted that "sales are not our main concern at the moment, but we have seen a very significant drop" since the controversy unfolded, highlighting the seriousness of the backlash. This sentiment was echoed by Reuters, Channel News Asia, and Al Jazeera.

The backlash has prompted an internal investigation into the decision-making processes behind the campaign, with the e-commerce team being scrutinized for potential flaws in their risk management framework. An official revealed that the team had been overly focused on maximizing sales, which led to lapses in appropriate review procedures before the campaign was approved for launch. "The incident exposed serious flaws in Starbucks Korea's risk management framework," the company stated. This was also reported by Reuters, Channel News Asia, and Al Jazeera.

As a result of the controversy, public calls for boycotts of Starbucks have emerged, with government officials criticizing the campaign's implications. Interior and Safety Minister Yoon Ho-jung announced that Starbucks products would no longer be used at government events, branding the company's actions as "anti-historical behaviour." The political and public response highlights the profound societal sensitivity surrounding the historical events referenced in the marketing campaign. This context is detailed by Reuters, Channel News Asia, and Al Jazeera.