How significant was the sales decline for Starbucks Korea post-controversy?

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Starbucks Korea Experienced a Notable Decrease in Payment Volume Following Controversy

Starbucks Korea saw a significant drop in payment volume in the period immediately after the "Tank Day" promotion controversy. Specifically, credit and debit card payment volume experienced a 17 percent decrease between May and June, according to data from the local platform firm IGAWorks. This decline occurred amidst widespread accusations that the promotion trivialized a significant pro-democracy movement and insulted victims of the 1980 Gwangju uprising.
Payment Volume Declined Sharply in Early June

Following the "Tank Day" promotion's launch on May 18, which coincided with the anniversary of the 1980 Gwangju pro-democracy uprising, Starbucks Korea faced severe backlash. The company's estimated credit and debit card payment volume subsequently fell by 17 percent from May to June. This period of decreased transaction volume was directly linked to the public outcry and allegations of defamation against activists and their families.
Public Outcry Led to Accusations of Insult

The controversy stemmed from a campaign promoting new tumblers, which coincided with the anniversary of the Gwangju uprising, a period marked by significant civilian casualties when tanks were deployed. Civic groups and bereaved families filed complaints, accusing Starbucks Korea's operator, Shinsegae Group, of defaming and insulting the victims and their relatives. The campaign's messaging also reportedly alluded to phrases used by officials at the time to deny allegations of torture.
Starbucks Korea Responded with Apology and Store Closures

In response to the significant public backlash and the ensuing sales decline, Starbucks Korea issued a public apology. The company also took the unusual step of closing all of its over 2,000 stores nationwide for a day in June. This closure was reportedly for staff education, aiming to address the controversy and retrain employees. An internal investigation by Shinsegae Group found no evidence of intentional wrongdoing, though it acknowledged limitations in its audit process.

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How significant was the sales decline for Starbucks Korea post-controversy?

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