AI campaign by Starbucks in South Korea sparks scandal

The AI-assisted marketing campaign by Starbucks in South Korea has triggered a major scandal after the launch of a promotional “Tank Day” offer in May, which included discounts on tumblers. The campaign launch date—May 18—coincided with the start of the 1980 Gwangju Uprising, during which more than 200 people were killed when military forces used tanks to suppress pro-democracy protests. The timing of the promotion sparked widespread public outrage.

In response to the backlash, Starbucks Korea decided to temporarily close all of its stores across the country and conduct mandatory training for employees on South Korean modern history and social responsibility. More than 2,000 outlets are set to suspend operations on June 22 after 3 p.m. for lectures and training sessions aimed at improving cultural and historical sensitivity.

The controversy intensified after it emerged that parts of the campaign had been generated with the help of an artificial intelligence system. The company acknowledged that this contributed to insufficient consideration of historical context, while some managers approved the materials without properly reviewing sensitive dates and themes.

Following the backlash, the campaign was quickly halted, but the consequences continued to escalate, leading to the dismissal of the CEO of Starbucks Korea. The company and its leadership issued public apologies, admitting failures in judgment regarding cultural and historical sensitivity.

Shinsegae Group, which operates Starbucks Korea, and Starbucks headquarters stated that the incident is being treated as a serious lesson for future marketing decisions. Investigations are ongoing, and several senior managers have already been named as suspects in related proceedings.

Tags: South Korea, AI, Starbucks