Shinsegae Chairman Apologizes Over Starbucks Korea Campaign
Shinsegae Chairman Chung Yong-jin issued a public apology over a controversial Starbucks Korea marketing campaign that evoked a brutal 1980 military crackdown.
Shares in South Korean retailer Shinsegae fell on Tuesday after Chairman Chung Yong-jin apologized for a Starbucks Korea campaign that reminded the public of the 1980 Gwangju Uprising. The conglomerate operates the Korean unit of Starbucks.
Campaign and Backlash
Starbucks Korea's 'Tank Day' campaign, launched on May 18, coincided with the country's commemoration of the 1980 pro-democracy protests. The campaign sparked public outrage, leading Shinsegae to fire the head of Starbucks Korea.
Chung stated, 'I take it very seriously that Starbucks Korea's inappropriate marketing hurt and angered many people. I will take all responsibility for the incident.'
Stock Performance
Shinsegae shares opened higher on Tuesday but fell 2.6% after Chung's comments. The company had previously apologized for the 'inappropriate marketing' and dismissed the head of Starbucks Korea.
Starbucks Global also apologized and launched an investigation. South Korea's Interior Minister announced that his ministry would stop offering products from companies that 'make light' of the country's democratic history.
Impacted Symbols
Symbols affected by this headline and their sentiment signals
Starbucks Corporation
Starbucks Global apologized and launched an investigation, but direct financial impact may be limited; reputational risk exists.
Shinsegae shares fell 2.6% after the chairman's apology; public backlash and potential sales loss are concerns.
E-Mart owns 67.5% of Starbucks Korea, so it is directly affected; share value and brand image may suffer.
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