'the 18th Tank Day' apology by Jeong Yong-jin (Chairman) fails to stop… E-Mart stock plunges 9.56%, wiping out 270.5 billion won in market cap

*This content was translated by AI.

Starbucks Korea's 'the 18th Tank Day' marketing campaign sparked controversy over the belittlement of history, leading to a decline in the corporate valuation of its parent company, E-Mart. Although Chairman Jung Yong-jin of Shinsegae Group announced a national apology, public criticism continues. Starbucks faced nationwide outrage for conducting an event that evoked the torture of martyr Park Jong-chul with the phrase "thump on the desk" and belittled the the 18th Democratic Uprising.

As a result of the incident, E-Mart's stock price fell 9.56% from 102,500 won on the 15th, when the controversy erupted, to 92,700 won on the 26th. Market capitalization dropped by 270.5 billion won in a short period. Although the stock price rebounded slightly after Jeong Yong-jin (Chairman)'s apology, market capitalization remains in the 2.5 trillion won range.

As the situation escalated, Jeong Yong-jin (Chairman) held an emergency press conference on the 26th and expressed sincere apologies to the families of the the 18th martyrs and martyr Park Jong-chul, as well as to citizens of Gwangju and the nation. Shinsegae Group has launched personnel reforms, including an investigation into the facts, the removal from duty of all involved parties, and the dismissal of Starbucks Korea CEO Son Jeong-hyun. However, civil society groups are demanding not just a simple apology, but substantive compensation and follow-up measures.

The Minjung Livelihood Measures Committee has already filed a criminal complaint against Jeong Yong-jin (Chairman) for insult and defamation, urging concrete actions such as discount events that consumers can feel. The People's Solidarity for Participatory Democracy stated that protests from consumers disappointed with Starbucks' response are continuing, arguing that customers requesting refunds for prepaid balances should be granted full refunds this time only. Additionally, the group demanded the establishment of psychological counseling and medical support systems to protect on-site workers in stores.

Civil society is also pressuring the National Pension Service, the second-largest shareholder holding 7.89% of E-Mart shares, to actively exercise its shareholder rights.Emphasizing that corporate valuation has been damaged due to the incompetence of management and failure of internal controls, resulting in losses to citizens' retirement funds, the group stressed that step-by-step shareholder action must be taken in accordance with the principle of fiduciary responsibility. Furthermore, the structure allowing the U.S. headquarters to forcibly acquire all of E-Mart's shares at a 35% discount if the license agreement is terminated due to E-Mart's fault is also problematic, stemming from a call option clause granted to the U.S. headquarters at the time E-Mart acquired shares in Starbucks Coffee Korea in 2021.

With the risks posed by the owner and management threatening the very survival of the company, market and public attention is focused on whether sincere reform and compensation will be realized.

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*This content was translated by AI.