Starbucks Korea Sets Up Dedicated Digital and Information Security Units... Strengthens Internal Systems

Measures seen as preventing a recurrence of the "Tank Day" marketing controversy
Building an integrated management system for IT functions
Aimed at strengthening personal information protection capabilities
Strengthening information security organizations across the group

Starbucks Korea is strengthening its internal management systems by establishing new organizations focused on digital operations and information security. Shinsegae Group also plans to reorganize the teams overseeing these functions across the group to enhance expertise and operational efficiency.

A Starbucks store in Seoul. Photo by Kang Jinhyung

According to Shinsegae Group's 2027 regular executive appointments and organizational restructuring plan announced on October 23, SCK Company, the operator of Starbucks Korea, has established new Digital and Information Security Center divisions.

The move is seen as an effort to strengthen internal controls and prevent a recurrence of the so-called "Tank Day" marketing controversy that arose in the first half of this year. In planning the promotion at the time, generative artificial intelligence (AI) was used indiscriminately, and internal review processes failed to function properly before inappropriate marketing terminology was disseminated externally. Analysts say the company intends to establish separate internal teams to ensure such an incident does not happen again. SCK Company has also reorganized its Food and Beverage Development division, which oversees drinks and food, into a Category division that will also handle MD (merchandise).

After the Starbucks controversy, Shinsegae Group Chairman Chung Yong-jin said in an apology, "We will fundamentally review our internal systems and risk management framework and raise our standards for social responsibility." Starbucks also announced plans to introduce a system requiring final reviews of marketing content by the heads of relevant departments, including the teams in charge, quality assurance and legal affairs. It said it would ensure that all content shown to customers undergoes multiple review procedures before being put into effect.

Shinsegae Group said the establishment of the Digital division and Information Security Center at SCK Company is intended to enhance expertise by building an integrated IT management system and strengthen its capabilities in personal information protection and information security.

The group-wide organizational restructuring also highlights an increased focus on digital operations and information security. E-Mart and Chosun Hotels & Resorts have elevated their Information Security divisions to Information Security Centers, while E-Mart24 has established a Compliance division responsible for compliance management and an Information Security Center. SSG.COM has also reorganized its Chief Information Security Officer (CISO) division into an Information Security Center. In addition, Shinsegae I&C, which oversees the group's IT systems, has established a Business Strategy Headquarters, with a Strategic Planning division, a Platform Business division and an AI Transformation (AX) Center under it.

Meanwhile, Chairman Chung will return as CEO of E-Mart for the first time in 13 years under the appointments. He is set to serve as co-CEO alongside Kim Hong-geuk, CEO of Shinsegae Casa. A total of 36 executives have been promoted to new group executive positions, the highest number on record. The group also actively selected executives in their 40s, bringing their share of all group executives to a record 18%.

Shinsegae Group said, "Chairman Chung has decided to personally lead the group's transformation during an era of sweeping industrial change driven by artificial intelligence," adding, "By identifying talent based on performance, we will maximize the competitiveness of our core businesses and deliver results in future growth businesses as well."

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