South Korean local governments have sharply cut their purchases of Starbucks gift cards following the controversy over Starbucks Korea's so-called "Tank Day" promotion. Purchases had risen through 2024 and 2025 before plunging this year.
Local governments spent 1.35 billion won (about $970,000) on Starbucks gift cards over the past three years in amounts that could be broken down by year, according to data submitted by local governments to Rep. Park Jung-hyun of the Democratic Party of Korea, a member of the National Assembly's Public Administration and Security Committee, on the 14th. Including purchases whose timing could not be identified, the total rises to 1.71 billion won.
Purchases grew to 683.14 million won in 2025 from 524.79 million won in 2024. But spending in the first half of this year came to just 139.88 million won, below the 341.57 million won that would represent half of last year's total. Average monthly purchases rose to about 56 million won last year from about 43 million won in 2024, then fell to about 21 million won in the first half of this year.
Purchases Plunge After Tank Day Controversy
The sharp drop this year is attributed to the controversy over Starbucks Korea's "Tank Day" promotion in May. Starbucks Korea used the phrase "Tank Day" in marketing on the anniversary of the May 18 Gwangju Democratization Movement, drawing criticism that later grew into a boycott campaign. Data from Mobile Index, compiled by market research firm IGAWorks, showed Starbucks' weekly payment volume fell 26.3% from the previous week immediately after the controversy.
By region, Seoul spent the most on Starbucks gift cards over the past three years at 526.97 million won. Gyeonggi Province followed at 356.73 million won, then Gyeongsang Province South at 112.89 million won, Busan at 106.19 million won and Chungcheong Province South at 90.53 million won. Seoul and Gyeonggi together accounted for 51.7% of the total.
Local governments used the gift cards to reward and encourage employees and to cover snack costs. Some were handed out as prizes to people who took part in surveys or various events.
"It does not add up that local governments, which have urged the use of local currency to revitalize regional economies, are spending their own administrative budgets on gift cards from a large corporate brand rather than on small businesses," Park said. "We will review both the state of gift card purchases by each local government and how local currency budgets are being executed."
Starbucks came under intense criticism after using the phrase "Tank Day" in marketing on May 18, the anniversary of the May 18 Gwangju Democratization Movement. As critics said the phrase evoked the martial law crackdown and boycott sentiment spread, parent company Shinsegae Group responded by dismissing the chief executive, having Chairman Chung Yong-jin apologize publicly and providing history education for all employees.
