Starbucks Korea CEO Dismissed: What Went Wrong in the Controversial Marketing Campaign?
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[Sports Seoul | Reporter Won Seong-yun] Shinsegae Group has dismissed Son Jeong-hyun, CEO of Starbucks Korea, holding him accountable for an inappropriate marketing campaign. The promotion was halted immediately, and Starbucks issued a formal apology.
On May 18, Shinsegae said it had removed CEO Son and the executive who organized the event and will begin strict disciplinary procedures for all employees involved.
The incident stemmed from Starbucks’ “Buddy Week” promotion, which began on May 15. While promoting the “Dante,” “Tank,” and “Nasu” tumbler series through its app, Starbucks used wording that many found inappropriate.
On May 18, Starbucks posted an in-app notice acknowledging the inappropriate language and offering a sincere apology for the distress and inconvenience caused to customers. The promotion has been suspended entirely.
According to Shinsegae, the dismissals followed a direct order from Chairman Chung Yong-jin. He regarded the timing of the marketing lapse—on the anniversary of the May 18 Gwangju Democratic Uprising—as particularly serious and demanded the group’s strongest disciplinary response.
A Shinsegae official said Chairman Chung instructed a strict, thorough internal investigation as soon as he was briefed. Given the gravity of the matter, the company removed the CEO to send a clear warning and prevent similar incidents from recurring.
Starbucks and Shinsegae said they will conduct a comprehensive review of internal processes, implement reforms to prevent future incidents, and take follow-up measures to promote proper historical awareness within their organizations.
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