Starbucks Korea crisis deepens as controversial ad leads to police action

A disastrous ad campaign by Starbucks in South Korea has not only earned a nationwide backlash by the public but has brought about a police raid at the coffee chain's headquarters in Seoul.

The Seoul Metropolitan Police confirmed to CNN that officers had carried out a search of the Starbucks Korea headquarters in connection with preparations for South Korea’s upcoming Liberation Day holiday, which commemorates the country’s liberation from Japanese colonial rule at the end of World War II. 

While authorities declined to provide further details about the investigation, the raid marks the latest setback for Starbucks Korea, which has been struggling to recover from a major public relations crisis caused by an advertising campaign earlier this year that many South Koreans considered historically insensitive.

The controversy began in May, when Starbucks Korea — operated under a licensing arrangement with South Korean retail giant Shinsegae Group — launched a promotional campaign for its “Tank” line of tumblers.

The campaign was unveiled on the same day as Democratization Movement Day, a national observance commemorating the 1980 Gwangju Uprising, when more than 100 civilians were killed during a pro-democracy movement against military rule.

Many critics argued that the use of the word “tank” and the timing of the promotion appeared to reference the military vehicles deployed during the crackdown on protesters.

The backlash was intensified by the country’s recent political tensions. Memories of the uprising had been further revived after then-President Yoon Suk Yeol briefly declared martial law in December 2024, prompting mass protests and a political crisis.

South Korea's subsequent President Lee Jae Myung also criticised the campaign, saying he was “enraged” by the advertisement.

Starbucks Korea issued an apology shortly after the controversy erupted, followed by a statement from Starbucks’ global headquarters announcing an internal investigation into the incident. A day later, Shinsegae Group dismissed Starbucks Korea CEO Sohn Jeong-hyun, citing “inappropriate marketing.”

The company has since faced declining sales and launched a series of measures aimed at restoring public trust. In June, Starbucks temporarily closed all of its stores across South Korea — one of the company’s largest international markets — for an afternoon to provide employees with mandatory training on historical awareness and social sensitivity.

The incident has become a major reputational challenge for the global coffee chain, highlighting the risks international brands face when marketing campaigns intersect with sensitive historical and political issues.

By Nazrin Sadigova