Starbucks Korea Payments Drop Over 10 Billion Won After Controversial Promotion

SEOUL, June 4 (Yonhap) -- Payments at Starbucks Korea plunged over 10 billion won (US$6.5 million) in the month of May, following a controversial promotion event criticized for evoking painful memories of the 1980 pro-democracy uprising, industry data showed Thursday.

Operated by E-Mart, a subsidiary of Shinsegae, Starbucks Korea launched an online "Tank Day" promotion on the anniversary of the May 18 uprising in the southwestern city of Gwangju. The event was suspended within hours after drawing widespread public criticism.

Starbucks Korea's estimated payment volume for May totaled 121.2 billion won, down by some 10 percent, or 13.1 billion won, from 134.3 billion won a month earlier, according to MobileIndex, a data platform operated by industry tracker IGAWorks.

Weekly payment volume had also fallen for two consecutive weeks since the controversial campaign's launch, the data also showed.

The figure only includes purchases made through local debit and credit cards, and does not include payments made through other channels, including cash, simple payment methods and the coffee chain's mobile application.

The coffee company launched the discount event for "Tank" tumbler sets, along with a controversial phrase, "Put it on the table with a sound of 'Tak!'"

The campaign came under fire, as the word "tank" evoked memories of the military clamping down violently on pro-democracy protesters. The word "Tak" also sparked backlash, as it reminded people of student activist Park Jong-cheol, who died in 1987 after being tortured.