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Five days after the “Tank Day” marketing controversy erupted at Starbucks Korea, criticism has spread to politicians and civic groups, widening the fallout. Shinsegae Group Chairman Chung Yong-jin issued an apology and the company promptly removed the CEO, but the core findings of the internal investigation have not yet been released. With a public holiday approaching, industry insiders say the company could delay publication of the results for more than a week.
Retail sources said on May 22 that Starbucks Korea has not disclosed detailed findings from its probe into the Tank Day promotion it ran on May 18 to mark the May 18 Democratic Uprising memorial. Shinsegae Group suspended the promotion the same day the issue surfaced and dismissed Son Jeong-hyeon, CEO of SCK Company (Starbucks Korea). On May 19, Chairman Chung issued a public apology and moved to contain the crisis.
In his apology, Chung also outlined specific follow-up measures: a thorough investigation into how the incident occurred and into approval procedures, public disclosure of the findings, a reinspection of marketing-content review processes across all affiliates, a restructuring of approval procedures, and mandatory ethics and historical-awareness training for all employees, including himself. Shinsegae Group says it is conducting the internal investigation and related follow-up actions under Chung’s direction.
But the release of the internal report—which could be decisive in resolving the crisis—has been postponed. Industry sources say determining the scope of disciplinary measures and identifying organizational failures takes time. Large corporations route marketing content through multiple stages—from concept and operational review to senior-executive sign-off—before public release. That the problematic language reached the final execution stage suggests a breakdown in the company’s overall review system rather than the isolated error of a single staffer.
In that scenario, the company must overhaul its decision-making structure beyond simply disciplining junior staff. If the issue is deemed a systemic failure, the entire review process will need redesigning, which helps explain why internal coordination over the tone of the investigation report and subsequent measures is taking time.
Coordination with Starbucks’ U.S. headquarters is also delaying the process. Major international outlets have covered the controversy and the company’s global spokesperson issued an apology, so the Korean unit cannot unilaterally announce the findings. Fact-checking and aligning the external message and disciplinary measures with headquarters are essential steps.
The political and social backlash—centered on perceived disrespect for historical memory and democratic values—adds further pressure. With lawmakers publicly condemning the company, corporate officials are scrutinizing every line of the investigation statement.
Experts urge external oversight to prevent recurrence. Eun-hee Lee, a professor of consumer studies at Inha University, argued that companies should establish a pre-publication compliance body composed of outside experts familiar with online communities and digital trends, legal advisers, and academics to screen for ethical and legal risks in marketing content. She added that, once established, the CEO must empower this body—by granting it veto authority to immediately reject inappropriate proposals at the final stage—to strengthen internal controls.
Industry observers expect Starbucks Korea to deliver a comprehensive package: not only an account of events but also additional personnel actions, a revamp of internal review processes, and measures to prevent repetition. Given the gravity of the issue, they say the company should present follow-up plans alongside the investigation findings to restore market trust. The timing of the report and the rigor of the proposed measures will be the key test of Starbucks Korea’s crisis-management capability.
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