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[Point Economy] The backlash to Starbucks Korea’s so-called “Tank Day” promotion on the May 18 democratization anniversary has spilled over into government agencies and the financial sector, despite a direct apology from the Shinsegae Group chairman. Public institutions and banks—whose mandates rest on public trust and responsibility—have begun removing Starbucks gift cards and coupons from promotional campaigns to mitigate reputational risk.
On May 19, Jung Yong-jin, chairman of Shinsegae Group, issued a public apology: “I sincerely apologize to the spirits and bereaved families of the May 18 victims, the people of Gwangju, and the public for the deep hurt this caused. We lacked historical awareness and sensitivity.” Jung also dismissed the head of Starbucks Korea and implemented other damage-control measures, but civic outrage has continued unabated.
Gwangju Bank Sparks Chain Reaction at Commercial Banks… “Let’s Swap Starbucks Coupons”
On May 22, industry sources said major commercial banks—KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup—are carefully weighing plans to replace or scale back the use of Starbucks e-gift coupons, long a staple prize in savings promotions, card campaigns, and mobile-app events, in favor of other brands.
Regional banks moved first. On May 20, Gwangju Bank issued internal guidance banning the distribution of Starbucks products and gift cards across all departments and branches. A bank official said the move was made out of respect for local sentiment: “Starbucks’ event violated the spirit of May 18 and hurt community residents, so we acted with the local community in mind.”
Commercial banks followed suit. Woori Bank is converting prizes in ongoing customer promotions from Starbucks coupons to other coffee brands. NH Nonghyup changed the prize in a prediction event on its NH All One Bank mobile platform from a Starbucks Americano to a Twosome Place (투썸플레이스) product. KB Kookmin, Shinhan, and Hana said they cannot immediately terminate existing contracts, but they expect to exclude Starbucks from future promotions after considering social sensitivities and customer feedback.
Justice Ministry Orders Prosecutors to Inspect… Boycott Spreads Through Politics and Civil Society
The government has stepped up pressure. On May 22, the Ministry of Justice announced it had ordered the Supreme Prosecutors’ Office to review the procurement and use of Starbucks Korea products within prosecutorial budgets. The ministry said it requested checks on the use of those items in surveys, contests, and events and stressed it did not intend to discipline individual purchasers. Nonetheless, the directive sends a strong signal that agencies may exclude Starbucks from internal budget spending.
Earlier, Kwon Oh-eul, minister of Patriots and Veterans Affairs, said on social media on May 21 that he expressed deep regret and serious concern over Starbucks Korea’s Tank Day event and urged the company to demonstrate responsibility. The ministry has ordered a full review of its use of Starbucks gift cards at past events and issued internal guidance to suspend their use temporarily. Yoon Ho-joong, minister of the Interior and Safety, also called on the public sector to refrain from offering products from companies that appear to disregard democratic values.
Political pressure in the region intensified. On May 22, the Gwangju City Council issued a statement signed by all council members declaring an indefinite boycott: “For Gwangju citizens, ‘tanks’ are a symbol of state violence and a tragic memory of boots on the ground.” The council demanded full disclosure of the planning, review, and approval process for the event and called for personnel accountability for everyone involved.
Bank officials note that marketing choices directly affect a financial institution’s brand trust. Even modest, popular giveaways can cause severe reputational harm when tied to sensitive historical controversies. For that reason, analysts expect avoidance of Starbucks in promotions to continue for the foreseeable future.
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