Starbucks sees sharp drop in Korean sales after 'Tank Day' marketing backlash

Starbucks Korea has suffered a "very significant" drop in sales after a marketing campaign that evoked a brutal 1980 military crackdown on pro-democracy protesters triggered a public outcry, an official from the operator Shinsegae Group said on Tuesday.



The retailer, whose subsidiary E-Mart owns the coffee chain in South Korea, has faced mounting criticism over its so-called "Tank Day" campaign using tumblers to promote the anniversary of the May 18 Gwangju Uprising, when the military government deployed troops and tanks to suppress pro-democracy demonstrations.



In a press conference on Tuesday, Shinsegae Group chairman Chung Yong-jin made a public apology and askedpeople not to take out any anger on Starbucks Korea employees and frontline staff.



"I take it very seriously that Starbucks Korea's inappropriate marketing hurt and angered many people," Chung said. "I will take all responsibility for the incident."



Hundreds of people are estimated to have died or gone missing when the military dictatorship of Chun Doo-hwan cracked down on the protests in Gwangju. Many details remain unconfirmed, including who gave the order to open fire.



Shares in Shinsegae fell as much as 2.8% in morning trade before reversing course to rise 1.7% as of 0116 GMT, while E-Mart shares gained 2.3%, compared with a 3.2% rise in the benchmark KOSPI.