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Shinsegae Group chairman Chung Yong-jin opened a press briefing in Seoul on Tuesday with a single declaration: "I will make no excuses. I take full responsibility for this matter." He did not take questions from the media.
This statement was made as Shinsegae, which runs Starbucks Korea through a licensing agreement, shared the results of an internal investigation into the "Tank Day" promotion.
The campaign for tank tumbler cups was launched on May 18, the anniversary of the 1980 Gwangju pro-democracy uprising. The crackdown on that revolt, according to official figures, killed 165 civilians, left 65 listed as missing, and resulted in 376 others dying later of injuries.
Shinsegae executive Jeon Sang-jin told reporters that the team focused on speed and urgency for the campaign, and no one raised any objections during planning or approval.
The investigation found that employees had asked the AI for ideas and had not considered the May 18 anniversary. It is still unclear whether the team used the AI-generated suggestions as they were.
Jeon said the employees denied doing anything wrong on purpose and only realized the campaign might be a problem after people reacted negatively.
The investigation also found that some of the seven officials who approved the campaign did so out of habit, without even opening the attached design file in the email. The legal team’s review, which had been conducted previously, was skipped this time.
Jeon said, "This incident went beyond the question of whether individual employees were at fault and exposed a lack of social and historical sensitivity within Starbucks Korea."
The controversy caused sales to drop sharply and led to the firing of Son Jung-hyun, the head of Starbucks Korea. Three out of five marketing team members would not give up their mobile devices for forensic review, citing privacy concerns.
Police have launched a separate investigation, and anyone found to have deliberately mocked the uprising could be fired or face legal action.
The backlash spread beyond the company. South Korean President Lee Jae Myung called the promotion "inhumane and disgraceful conduct" in a post on X.
The defense ministry ended its partnership with Starbucks, which had provided drinks to soldiers. Some celebrities were criticized for being seen with Starbucks cups, while others posted online videos of themselves breaking Starbucks mugs.
The Gwangju uprising is also the historical background for Nobel laureate Han Kang's novel "Human Acts."
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