(3rd LD) Shinsegae chief apologizes for controversial Starbucks promotional campaign

Lead

Shinsegae Group Chairman Chung Yong-jin issued a formal public apology on May 26 for a Starbucks Korea promotional campaign that many said evoked painful memories of the 1980 Gwangju pro-democracy movement. At a press conference in Seoul, Chung said he would offer “no excuses” and take full responsibility for the incident, which has sparked widespread criticism and drawn comment from President Lee Jae-myung.

Coverage Comparison

Reporting from Yonhap News, South Korea’s leading wire service, consistently covered the apology and its context. Multiple Yonhap articles detailed Chung’s statements, the company’s internal investigation, and the broader reaction. One article focused on the government’s response, quoting President Lee’s public criticism of Starbucks Korea and raising concerns about the controversy’s politicization. Another report highlighted the reactions of civic groups, some of whom questioned the sincerity of Chung’s apology. A separate Yonhap piece covered Chung’s subsequent appointment as co-CEO of E-Mart and Shinsegae Property, a move the company said was intended to show his commitment to reforms at Starbucks Korea.

Key Claims

• Apology and Responsibility: Chung Yong-jin apologized “sincerely” and said he would “bow his head” in apology to the bereaved families of uprising victims, the family of democracy activist Park Jong-chul, and citizens of Gwangju. He vowed to take full responsibility and stated he would make no excuses, according to multiple Yonhap reports.
• Campaign Context: The controversy centered on an online “Tank Day” promotion launched by Starbucks Korea on May 18, the anniversary of the Gwangju uprising. The promotional materials included language that critics said mocked the movement. The campaign was suspended within hours after public backlash, Yonhap reported.
• Internal Investigation: Shinsegae said an internal investigation found no evidence that the campaign was intentionally designed to insult the movement. The company said that if a police investigation later finds intentional misconduct, the employees involved would be dismissed and held civilly and criminally accountable.
• Government and Public Reaction: President Lee Jae-myung publicly criticized Starbucks Korea, accusing the company of belittling the May 18 movement. Some Yonhap coverage questioned the government’s response as “excessive” and warned against politicizing the issue. Civic groups criticized Chung’s apology as lacking sincerity, a claim reported by Yonhap.
• Leadership Changes: In June, Shinsegae announced that Chung would become co-CEO of E-Mart, the group’s discount retailer and operator of Starbucks Korea, as well as co-CEO of Shinsegae Property. The company said the move reflects Chung’s commitment to overseeing reforms. E-Mart holds a 67.5 percent stake in Starbucks Korea.

Perspectives

• Company Perspective: Shinsegae emphasized that the campaign was inappropriate and apologized while maintaining that no malicious intent was found. The company highlighted systemic failures in its approval process and pledged fundamental improvements.
• Government/Public Officials: President Lee Jae-myung’s criticism framed the campaign as disrespectful to the memory of the Gwangju movement, underscoring the need for corporate accountability.
• Civic Groups: Some groups expressed skepticism about the apology’s sincerity, suggesting that the company’s actions may not fully address the harm caused.
• Critics of Politicization: Some commentary, including within Yonhap’s coverage, argued that the controversy should not be used for political purposes and that the government’s response may have escalated the situation unnecessarily.