Beleaguered Shinsegae chairman apologizes for Starbucks crisis

Shinsegae Group Chairman Chung Yong-jin bows in apology over a controversial marketing campaign by Starbucks Korea during a press conference at Josun Palace hotel in Gangnam District, Seoul, Tuesday. Korea Times photo by Shim Hyun-chul

Shinsegae Group Chairman Chung Yong-jin apologized to the public in person on Tuesday for the controversial "Tank Day" marketing event by Starbucks Korea, which has been criticized for disparaging the 1980 Gwangju Uprising and pro-democracy movement.

The apology came eight days after the coffee chain's campaign was released on May 18, the anniversary of the Gwangju Uprising. It was the chairman's first in-person apology since he took over the group's leadership in March 2024. On May 19, he issued a written apology over the promotion. Emart, a Shinsegae Group affiliate, is the largest shareholder of Starbucks Korea.

"Regardless of the reason, the fact that we have hurt the hearts of our citizens carries a heavy responsibility," Chung said during a press conference in southern Seoul. "I will make no excuses. All responsibility for this matter lies with me. It is my fault."

He continued, “Everyone at Shinsegae, including myself, will remember our society's history and sacrifices, and always deeply understand and respect the hearts of the public."

Chung said his group would review internal systems and risk management from scratch and raise the bar for social responsibility.

He also said the responsibility lies with the company's management, including himself, asking the public to spare Starbucks store employees from the backlash, following reports that some customers have been venting their anger at on-site employees.

"I sincerely ask the public to look upon them with greater warmth. They are simply hardworking employees doing their best in their respective places from early morning until late at night for each and every Starbucks customer. The responsibility lies with the organization and myself."

Shinsegae Group Chairman Chung Yong-jin holds a press conference at Josun Palace hotel in Gangnam District, Seoul, Tuesday, to apologize over a controversial marketing program by Starbucks Korea. Korea Times photo by Shim Hyun-chul

Chung concluded his roughly five-minute apology by referring to “differences in opinions.”

"I believe now is a time when we need more effort to understand one another and move forward together. Our individual thoughts may differ, but I believe we all share the same desire to build a better Korea and leave a better world for future generations. Everyone at Shinsegae Group, including myself, will learn with a more humble attitude and strive harder through this experience."

Starbucks Korea later in the day announced that it would refund all Starbucks prepaid gift cards, no matter how much of charged amounts had been spent. The service will be in effect from June 1 to 14.

The decision comes amid complaints from consumers who could not receive refunds unless they had used less than 60 percent of the loaded amount. The company had explained the policy was derived from the Fair Trade Commission's regulations on prepaid cards.

"With a deep sense of responsibility and regret, we have eased our store policies to minimize any inconvenience for customers who have recently requested refunds," a Starbucks Korea official said.

Chung’s in-person apology came after the coffee chain's promotion, named "Tank Day" for the tumbler style, drew criticism as it was seen as evoking military vehicles used against the citizens of Gwangju under the military junta of Chun Doo-hwan, who became president later that year. State violence in Gwangju killed at least 162 civilians and injured over 2,600.

The ad also used a phrase that translates into English roughly as “Put it on the table with a sound of 'tak!'” The phrase references the infamous explanation given by police in the torture death of student activist Park Jong-chul in 1987, claiming that “he died with a gasp as we smacked the desk.” The remark later became a major catalyst for Korea’s democracy movement.

Chung responded to the backlash by dismissing Starbucks Korea CEO Sohn Jeong-hyun shortly after the event was launched, holding him responsible for the incident. The move, however, only further fueled public anger, with critics questioning whether Chung had fired Sohn merely to contain the fallout and shield himself from accountability for the fiasco.

Shinsegae Group Chairman Chung Yong-jin apologizes over a controversial marketing campaign by Starbucks Korea during a press conference at Josun Palace hotel in Gangnam District, Seoul, Tuesday. Korea Times photo by Shim Hyun-chul

In the coming days, anti-Starbucks sentiment has spread rapidly among consumers and even spilled into political circles, fueling tensions between liberal and conservative blocs ahead of the June 3 local elections. Multiple ministries in the Lee Jae Myung government have said they will pause their use of Starbucks products and numerous liberal candidates have announced boycotts of the coffee chain.

Chung's apology reflects concerns that a prolonged boycott campaign could deal a massive blow to Shinsegae Group due to Starbucks Korea's importance as a cash cow.

Many believed that the promotional event was the latest reflection of Chung’s well-known far-right political views. In 2021 and 2022, he repeatedly used a Korean phrase meaning “eradicate communism” in Facebook posts. He was also seen as attending the musical “Park Chung Hee,” an event that attracted a number of far-right public figures. In 2023, he sent a congratulatory video message to Build Up Korea, a movement associated with far-right political groups.

Attention was also drawn to earlier promotion events, which have now become the subject of new controversy.

On April 16, 2024, Starbucks Korea launched a Siren Classic Mug lineup featuring the brand’s two-tailed mermaid logo.

However, the timing and imagery coincided with the anniversary of the 2014 Sewol ferry disaster, in which more than 300 people — mostly high school students — died after the ship sank off the coast of Jin Island in South Jeolla Province. The siren in Greek mythology is a creature known for luring sailors to death with an enchanting voice.