Shinsegae Group Chairman Jung Yong-jin issued a public apology Tuesday for a Starbucks marketing campaign that sparked widespread consumer outrage [1].
The controversy centers on the "Tank Day" promotion, which critics said was insensitive to the anniversary of the May 18 Gwangju Democratization Movement [3]. The backlash resulted in organized boycotts and a significant drop in the brand's market standing in South Korea.
Jung held a press conference at the Shinsegae headquarters in Gangnam-gu, Seoul, starting at 9 a.m. KST [2]. During the event, he presented the results of an internal investigation into how the campaign was developed and approved. He said that the company would provide unconditional refunds to all affected customers.
"A true apology is an unconditional refund," Jung said [6].
The fallout from the promotion had immediate corporate and financial consequences. Starbucks Korea fired its CEO and other senior executives on May 18, 2026 [5]. The company also lost its top position in the KakaoTalk gift-exchange rankings, a spot it had held for seven years [4].
The "Tank Day" wording was viewed as particularly offensive given the historical context of the May 18 movement, where military tanks were used against civilians. The company's failure to vet the campaign for historical sensitivity led to the swift removal of leadership and the current effort to regain public trust through financial restitution.
“"A true apology is an unconditional refund."”
This incident highlights the extreme sensitivity of historical trauma in South Korean consumer culture. By firing top executives and offering unconditional refunds, Shinsegae is attempting to mitigate a brand crisis that transitioned from a marketing error to a perceived political insult. The loss of the KakaoTalk ranking suggests that the backlash had a measurable impact on the company's digital commerce dominance.
