Shinsegae chair apologizes as group releases results of probe into Starbucks Korea's 'Tank Day' fiasco
Published: 26 May. 2026, 17:56
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- KIM MIN-YOUNG
- [email protected]
![Chung Yong-jin, chairman of Shinsegae Group, speaks during a press conference at the Josun Palace Hotel in Gangnam District, southern Seoul, on May 26. [YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2026/05/26/2cfa49ba-cc18-41a5-af2a-c8125efba413.jpg)
Chung Yong-jin, chairman of Shinsegae Group, speaks during a press conference at the Josun Palace Hotel in Gangnam District, southern Seoul, on May 26. [YONHAP]
Shinsegae Group Chairman Chung Yong-jin made a rare mea culpa after Starbucks Korea's marketing blunder sparked criticism from the public and government.
"To the families of those who took part in the May 18 democratic uprising who have felt profound pain and disappointment because of this incident, to the citizens of Gwangju and to all the people of Korea, I sincerely bow my head in apology as chairman of Shinsegae Group and ask for your forgiveness," Chung said at the Josun Palace Hotel in southern Seoul on Tuesday at a press conference. "The responsibility lies with me. It is my fault."
Tuesday's conference was attended by four senior Shinsegae Group officials, who joined Chung to present the findings of its internal investigation and field questions.
No evidence of intent to disparage the May 18 Gwangju Democratization Movement was found in the controversial campaign, according to Senior Executive Vice President Jeon Sang-jin, although he admitted to poor oversight by management.
"Based on our investigation to date, we have not found clear evidence proving that the employees or executives intentionally planned the marketing campaign with malicious intent," Jeon said. "This was affected in part by legal and procedural limitations on the company's investigation, including the refusal of certain employees to submit their mobile phones for examination."
Three of the five employees on Starbucks Korea's e-commerce team that planned the campaign declined to submit their mobile phones to investigators, citing personal privacy concerns, leaving the probe unable to definitively establish whether advance coordination had occurred. The employees who did cooperate showed no evidence of premeditation, and the team told investigators they had used AI tools to generate the controversial slogan without realizing its historical significance.
![Jeon Sang-jin, senior executive vice president and chief financial officer at the Shinsegae Group, announces the results of an internal investigation into the Starbucks “Tank Day” controversy at the Josun Palace Hotel in Gangnam District, southern Seoul, on May 26. [YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2026/05/26/f5e816a9-b4f2-4419-af69-01a66e1d4f4e.jpg)
Jeon Sang-jin, senior executive vice president and chief financial officer at the Shinsegae Group, announces the results of an internal investigation into the Starbucks “Tank Day” controversy at the Josun Palace Hotel in Gangnam District, southern Seoul, on May 26. [YONHAP]
The investigation findings
The probe, led by Audit Team Leader Yang Jong-hwan, covered 15 individuals, including five executives, five working-level employees and five people in the approval chain. The investigation included forensic examination of company email, work laptops and internal communication systems.
A timeline released alongside the findings showed that the Tank Day naming and May 18 launch date were finalized on April 15, with the e-commerce team telling investigators they had chosen the date because online sales were higher on weekdays than weekends and because Tank tumbler inventory and revenue projections were the strongest of the three featured products.
The "Tak on the desk!" slogan, the phrase recalling the infamous police statement issued after student activist Park Jong-cheol’s death by torture, was inserted by the e-commerce team on May 8, just 10 days before launch, without being reported to the planning executive or company management.
Internal messenger records are retained on company servers for only one week, leaving the team unable to determine which discussions occurred during the campaign's initial planning stages. The employees told investigators they had been focused on creating a slogan that rhymed with the existing promotional phrase.
"They said, 'We asked AI. We never even thought about May 18. Only after the issue became controversial did we realize it could be problematic,'" Jeon said.
![Shinsegae Group executives apologize over the Starbucks Korea ″Tank Day″ controversy at the Josun Palace Hotel in Gangnam District, southern Seoul, on May 26. [YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2026/05/26/9ae44c69-73da-4ee2-be1e-60969275c547.jpg)
Shinsegae Group executives apologize over the Starbucks Korea ″Tank Day″ controversy at the Josun Palace Hotel in Gangnam District, southern Seoul, on May 26. [YONHAP]
The investigation found that the Tank Day campaign passed through a four-stage approval process without anyone flagging the May 18 timing or language as inappropriate. Investigators found that some of the seven approvers signed off without ever opening the email attachment containing the marketing design.
"At no point in this process did anyone point out that using the phrase 'Tank Day' on May 18 was inappropriate," Jeon said. "Not a single objection was raised during either the planning or approval stages."
Some of the seven people in the approval chain signed off without opening the email attachment containing the marketing design. The legal review process used in past campaigns was bypassed to prioritize speed.
Senior Executive Vice President Kim Soo-wan, who heads Shinsegae's Corporate Communications and Affairs Office, said the issue extended beyond procedural failure. Two of the marketing team employees were in their early 20s, and three were in their late 30s.
"Their understanding of history may not fully align with the level of historical awareness expected by the company or society as a whole," Kim said. He added that the group would develop training programs on historical awareness across age cohorts.
![Starbucks mugs are seen broken in these photos posted on social media in the wake of Starbucks Korea's ″Tank Day″ promotion which was widely seen as mocking the country's pro-democracy movement. [SCREEN CAPTURE]](https://koreajoongangdaily.joins.com/data/photo/2026/05/26/c389735f-3b96-48dc-a956-585c68f307be.jpg)
Starbucks mugs are seen broken in these photos posted on social media in the wake of Starbucks Korea's ″Tank Day″ promotion which was widely seen as mocking the country's pro-democracy movement. [SCREEN CAPTURE]
Headquarters and the call option
The question of whether Starbucks's U.S. headquarters might exercise its call option, which would let it forcibly buy back Emart's Starbucks Korea stake at a 35-percent discount to fair value in the event of severe brand damage caused by the Korean partner, has hung over the controversy since the Tank Day fallout began.
Jeon said the call option had not been raised by the parent company. "The contract indeed provides for call-option rights in the event of a failure to fulfill obligations attributable to a party's fault," he said. "However, our current assessment is that this situation does not fall into that category."
Asked by the Korea JoongAng Daily about the possibility, a Starbucks Global spokesperson said the company has nothing to share at this stage, as the investigation is underway.
"I don't have anything more to share at this time as we're in the midst of an active investigation," the spokesperson said.
The U.S. headquarters has been kept informed of all developments in real time and is treating the matter "very seriously," Jeon said. Formal discussions with Shinsegae on internal risk management and control system improvements are expected to begin within the next few days.
![Chung Yong-jin, chairman of Shinsegae Group, apologizes over the Starbucks ″Tank Day″ controversy at the Josun Palace Hotel in Gangnam District, southern Seoul, on May 26. [YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2026/05/26/aeabb22c-ca08-4a02-812d-7c01319f849e.jpg)
Chung Yong-jin, chairman of Shinsegae Group, apologizes over the Starbucks ″Tank Day″ controversy at the Josun Palace Hotel in Gangnam District, southern Seoul, on May 26. [YONHAP]
What comes next?
Five e-commerce team employees and the executive overseeing them have been placed on administrative leave, in addition to Sohn's dismissal. Additional accountability measures, including potential criminal liability, will follow the police investigation, with which Shinsegae has pledged to cooperate fully.
Jeon declined to disclose sales figures during the controversy, acknowledging only that there had been "a significant decline."
Gwangju Mayor Kang Gi-jung sharply criticized Chung’s public apology on Tuesday, arguing that it failed to address key concerns. Speaking at a press briefing, Kang said the conference lacked a genuine apology, a clear investigation and accountability. He also accused Chung of shielding himself behind his employees rather than taking responsibility.
Kang rejected calls from civic groups to halt the planned Starfield shopping mall development and the Gwangcheon Terminal redevelopment project.
Starbucks Korea said on Tuesday that it will offer a temporary exception refund program from next Monday through June 14 after completing the necessary system development. During the two weeks, customers may request refunds regardless of the usual minimum usage requirement for prepaid balances.
BY KIM MIN-YOUNG, PARK EUN-JEE [[email protected]]
with the Korea JoongAng Daily
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