Starbucks "Tank Day" Controversy Fallout... Card Payments Plunge by 8.4 Billion Won

New App Installations Drop by Over 23%

Following the controversy over Starbucks' "5·18 Tank Day," both the estimated card payment amounts and the number of new application (app) installations sharply declined. Analysts say that after criticism spread online, this led to an actual decrease in transactions and new users.

According to Mobile Index, a data analysis solution by IGAWorks, Starbucks' estimated weekly credit and debit card payment amount from May 18 to 24 totaled 23,694,170,000 won. This is a decrease of approximately 8,421,700,000 won (26.3%) compared to the previous week (May 11 to 17), which recorded 32,163,520,000 won. Compared to the week before that (May 4 to 10), which saw 31,481,760,000 won in estimated payments, the amount dropped by 24.7%. During the same period, MegaMGC Coffee’s estimated weekly payment amount decreased by 6%, from 23,680,960,000 won to 22,252,740,000 won.

In contrast, Twosome Place saw a 3.5% increase, from 26,510,730,000 won to 27,431,290,000 won, while Ediya Coffee also saw a slight rise from 5,426,210,000 won to 5,552,980,000 won.

The decline was even more pronounced for Starbucks in new app installations. The number of new Starbucks app installations was 36,994, a decrease of 23.6% (11,447 fewer installs) compared to the previous week’s 48,441. MegaMGC Coffee dropped 8.5%, from 51,778 to 47,372, and Ediya Coffee decreased 5.5%, from 8,314 to 7,854. In contrast, Twosome Place saw a 20.8% increase in new app installations, from 33,029 to 39,892.

However, the number of weekly active users (WAU) for the app actually increased. Starbucks' weekly active users rose by 4.7% (182,072 more users), from 3,903,668 to 4,085,740. Industry sources suggest that existing users accessed the app more frequently to check announcements, review coupons and rewards, and confirm whether Starbucks card refunds would be processed.

Previously, on May 18, Starbucks Korea used expressions like "Tank Day" and "Bang! on the desk" in a tumbler sales advertisement that featured the phrase "a convenient tank series with a large capacity and a handle." Subsequently, online communities and social networking services (SNS) saw a surge in criticism that these phrases were making light of the 5·18 Democratization Movement and the 1987 death of activist Park Jongcheol due to torture.

On the day of the controversy, Shinsegae Group dismissed Starbucks Korea CEO Son Jeonghyeon and the executive in charge. The following day, Chairman Chung Yongjin issued a public apology, stating, "We have caused deep pain to those who lost their lives in the 5·18 Democratization Movement, their families, and the people of Korea," and added, "On behalf of the group, I sincerely bow my head in apology."

At a press conference on May 26, Chairman Chung reiterated his apology, saying, "I sincerely bow my head and apologize once again to the bereaved families of the 5·18 victims, the family of Park Jongcheol, the citizens of Gwangju, and the people of Korea who were deeply hurt and disappointed by this incident."

This content was produced with the assistance of AI translation services.