Starbucks Korea says HQ raided in 'Tank Day' inquiry

Starbucks Korea's local operator said Seoul police raided the chain's national headquarters on Wednesday as part of an investigation into allegations that its “Tank Day” promotion defamed and insulted victims of the 1980 Gwangju pro-democracy uprising.

A Shinsegae Group spokesman said the raid took place on Wednesday morning and declined to give further details. Seoul police said an investigation into the company was ongoing.

Starbucks Korea launched the promotion on May 18 for a new line of large tumblers. The date is the anniversary of the 1980 Gwangju uprising, when at least 165 civilians were killed as a military dictatorship rolled tanks onto the streets.

A civic group and bereaved families filed a complaint accusing members of Shinsegae Group, which operates Starbucks Korea, of defaming and insulting the victims and their relatives. The complaint named Shinsegae Group chairman Chung Yong-jin and Son Jung-hyun, the former chief executive of Starbucks Korea, who resigned over the controversy.

The campaign prompted a public apology and a one-off early closure of more than 2,000 Starbucks Korea stores nationwide in June for staff education. Shinsegae Group has said its internal investigation found no evidence of intentional wrongdoing, while acknowledging limits to the audit, including that an executive involved in planning the campaign refused to hand over a mobile phone.

Yonhap News Agency and national broadcaster KBS reported that police investigators were looking for evidence not included in the company investigation.

Shinsegae Group said the controversy caused a decline in sales in the early days of the scandal. Local data platform IGAWorks said Starbucks' estimated credit and debit card payment volume fell 17% from May to June.