Starbucks Korea sales slump after ‘Tank Day’ campaign backlash
Starbucks Korea has suffered a sharp decline in sales following backlash over a controversial marketing campaign accused of trivialising one of South Korea’s darkest historical events.
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Insensitive advertising
According to data released this week by analytics firm IGAWorks, Starbucks Korea’s weekly payment volume dropped by 26.3% after the company’s “Tank Day” promotion sparked public outrage. The company recorded 23.69bn won in payment volume between 18 and 24 May, down from 32.16bn won the previous week — a decline of more than 8bn won (about $5.3m). New installations of the Starbucks app also reportedly fell by 23.6%.
The controversy erupted after Starbucks Korea launched a promotion on 18 May — the anniversary of the 1980 Gwangju uprising, when South Korea’s military government used troops and tanks to violently suppress pro-democracy protests. Critics accused the campaign of using imagery and language linked to the massacre, triggering boycott calls and protests.
The backlash quickly spread online, with consumers and civic groups accusing the company of historical insensitivity. Delivery workers reportedly joined boycott efforts, while protests were held outside Starbucks Korea offices and stores.
Public apology
Shinsegae Group, which operates Starbucks in South Korea, has since apologised publicly for the campaign. Chairman Chung Yong-jin acknowledged the seriousness of the controversy after the company experienced what it described as a “significant decline in sales”. Starbucks Korea has also dismissed its chief executive, postponed marketing campaigns and launched an internal investigation into how the promotion was approved.
The incident has become a major talking point within global advertising and marketing circles, particularly around cultural sensitivity, brand safety and the risks of AI-assisted campaign development. Some local reports claim employees involved in the campaign told investigators that AI tools had been used during the creative process and that the historical significance of the launch date had not been properly considered.