Starbucks Reclaims No. 1 Spot on KakaoTalk Gift a Week After 'Tank Day' Controversy

Payment Volume Declines for Two Consecutive Weeks
Starbucks Still Seen as a "Safe Gift" Choice

Starbucks experienced a decline in payment volume following the "Tank Day" controversy, but has once again claimed the top spot in sales on the "KakaoTalk Gift" platform.

A Starbucks store in downtown Seoul. Photo by Yonhap News.

According to mobile index data from artificial intelligence (AI) data platform IGAWorks on June 6, Starbucks' estimated credit and debit card payment volume in April was 121.19 billion won, down 9.7 percentage points (about 13.1 billion won) from 134.32 billion won in the same period last year.

On a weekly basis, Starbucks' payment volume also dropped from 32.16 billion won between May 11 and 17 to 23.69 billion won during the week of May 18 to 24, when the controversy broke out, a decrease of 26.3 percentage points. In the following week, May 25 to 31, the figure fell again by 9.4 percentage points to 21.46 billion won, marking two consecutive weeks of decline.

Earlier, Starbucks Korea held a tumbler discount event on May 18. Advertising phrases such as "Tank Day" and "On the Desk" were used at the time, which drew criticism for being inappropriate on the anniversary of the 5·18 Democratization Movement, sparking controversy across online communities and social networking services (SNS).

As the controversy grew, Shinsegae Group replaced the CEO of Starbucks Korea and issued an official apology. When public criticism did not subside, Eui-sun Chung, Chairman of Shinsegae Group, personally issued a nationwide apology. Starting this month, Starbucks has begun offering full refunds for prepaid recharge balances in an effort to address customer dissatisfaction.

Although posts about canceling Starbucks cards and refunding gifticons have continued to appear online, signs of a sales recovery have also emerged in some areas.

As of the previous day, the 50,000 won Starbucks e-card regained the top spot in the café category on KakaoTalk Gift, about a week after losing its place due to the controversy. The 30,000 won e-card and beverage and dessert set products were also confirmed to be ranked among the top sellers.

Industry insiders point to Starbucks' network of over 2,000 stores nationwide, high brand recognition, and user convenience as factors that continue to make it a "safe gift" choice. Accordingly, experts have analyzed that there is a certain gap between the online criticism and actual consumer behavior.

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