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South Korean police raid Starbucks Korea over Tank Day controversy

Starbucks said the campaign was unintentional, but the controversy contributed to a serious sales decline in South Korea, one of its biggest markets.

Reported · Written up by our desk · Equities

South Korean police have raided Starbucks Korea’s national headquarters as part of an investigation linked to defamation claims tied to a controversial marketing campaign called “Tank Day.” In May, Starbucks Korea launched a coffee tumbler promotion on the anniversary of the 1980 Gwangju Uprising, when hundreds were believed to have been killed by military forces.

The campaign triggered widespread backlash and a mass boycott movement, with critics saying the “tank” reference echoed vehicles used to crush pro-democracy protesters. Starbucks moved quickly to roll back the promotion and said it was unintentional, while civic groups filed a criminal complaint asking police to investigate alleged defamation of victims.

Starbucks Korea’s operator, Shinsegae Group, said it conducted an internal investigation and concluded the team failed to make the connection to the historical event, and that upper management also did not catch it. The company added that Starbucks stores across the country closed for half a day in June so staff could attend history lessons.

Shinsegae apologised for the “inappropriate marketing” and said the controversy led to a serious decline in Starbucks sales in South Korea, which it described as one of the chain’s largest markets. The dispute escalated during the local elections season and drew public criticism from South Korea’s president Lee Jae Myung, according to the report.

Latest closeCoffee $307.70 ▼3.7%

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