The Korean unit of Starbucks (NASDAQ:SBUX), operated by the Shinsegae Group, is experiencing a significant sales decline due to a controversial marketing campaign that has sparked public outrage.
The contentious marketing campaign coincided with the anniversary of the May 18 Gwangju Uprising, a brutal military crackdown on pro-democracy protesters in 1980.
This has led to widespread criticism and backlash against Shinsegae and SCK Company, over the 'Tank Day' tumbler campaign, reported Yonhap News on Tuesday.
Shinsegae runs Starbucks Korea through SCK Company, which is majority-owned by E-Mart with a 67.5% stake, while Singapore's sovereign wealth fund GIC owns the remaining 32.5%, according to a company filing.
Shinsegae Group chairman Chung Yong-jin publicly apologized on Tuesday.
