Starbucks Korean Sales Decline Following Ad Campaign Backlash

Shinsegae Group’s Starbucks Korea Sees Significant Sales Drop Amid Controversy

The local operator of Starbucks Korea has reported a “very significant” decline in sales following a marketing campaign that sparked public outcry and criticism from government officials. The campaign, launched on the anniversary of the May 18 Gwangju Uprising, featured imagery evoking the brutal military crackdown on pro-democracy protesters.

Shinsegae Group chairman Chung Yong-jin made a public apology at a news conference, taking responsibility for the incident and asking customers not to direct their anger towards Starbucks Korea employees. The company has also fired the head of Starbucks Korea and apologized through a statement, acknowledging that the campaign caused “deep pain” to those affected by the May 18 Democratization Movement.

According to Shinsegae officials, sales have fallen sharply since the marketing controversy. A senior executive stated that while sales are not the primary concern at this time, the company has seen a significant drop in revenue. The investigation into the incident is ongoing, with Jeon Sangjin, a senior Shinsegae Group executive, stating that the company will review the results of the police inquiry.

Government officials have also weighed in on the controversy, with Interior and Safety Minister Yoon Ho-jung announcing that Starbucks products will no longer be used at government events. President Lee Jae Myung has condemned the campaign as “inhumane and disgraceful behaviour” by those who deny the values of the South Korean community.

The May 18 Gwangju Uprising resulted in hundreds of deaths or disappearances, with many details still unconfirmed. The incident has sparked public calls for boycotts, with some individuals expressing outrage over the marketing campaign’s perceived insensitivity to the event.

Source: Al Jazeera