South Korean police have raided Starbucks Korea’s headquarters as part of an investigation into a controversial marketing campaign accused of trivialising the country’s 1980 Gwangju pro-democracy uprising.
The search and seizure was carried out on Wednesday, with Starbucks Korea confirming that an investigative authority had conducted the raid as part of an ongoing investigation.
The controversy centres on a “Tank Day” promotion launched on May 18, which coincided with the anniversary of the Gwangju uprising. The campaign promoted large tumblers using messaging that critics said was insensitive to the 1980 military crackdown, in which at least 165 civilians were killed.
A civic group and bereaved families subsequently filed a complaint against members of Shinsegae Group, which operates Starbucks Korea, accusing them of defaming and insulting victims of the uprising and their relatives.
The complaint named Shinsegae Group chairman Chung Yong-jin and Son Jung-hyun, the former Starbucks Korea CEO who resigned following the backlash.
The campaign also drew criticism for references to phrases used by officials during the military dictatorship to dismiss allegations that a student activist had been tortured to death.
Starbucks Korea later issued a public apology and closed more than 2,000 stores nationwide for one day in June for staff education. Shinsegae Group has said an internal investigation found no evidence of intentional wrongdoing, although it acknowledged limitations in its audit, including the executive responsible for planning the campaign refusing to surrender their mobile phone.
Police are now seeking evidence that was not included in the company’s internal investigation, according to Yonhap News Agency and national broadcaster KBS.
The fallout has also hit Starbucks Korea commercially, with Shinsegae Group reporting a sharp decline in sales during the early days of the controversy. Data from local platform IGAWorks showed the chain’s estimated credit and debit card payment volume fell 17% between May and June.
South Korea is Starbucks’ third-largest market after the US and China.
