Economy

Coffee chain has seen ‘very significant’ drop in sales after campaign that evoked deadly crackdown, local operator says.

Starbucks Korea has suffered a “very significant” drop in sales after a marketing campaign that evoked a brutal 1980 military crackdown on pro-democracy protesters triggered a public outcry, according to the coffee chain’s local operator.

Shinsegae Group, whose subsidiary E-Mart owns the coffee chain in South Korea, has faced mounting criticism over its so-called “Tank Day” campaign, launched on the anniversary of the May 18 Gwangju Uprising, when the military government deployed troops and tanks to suppress pro-democracy demonstrations.

In a news conference on Tuesday, Shinsegae Group chairman Chung Yong-jin made a public apology and asked people not to take out any anger on Starbucks Korea employees and front-line staff.

“I take it very seriously, the fact that many people felt deep pain and anger because of Starbucks Korea’s inappropriate marketing campaign,” Chung said.

“I will take all responsibility for the incident.”

Chung also asked people not to take out their frustration on staff at Starbucks shops, saying the responsibility lies with management. There were no immediate reports of major incidents at stores.

Chung issued his first apology on May 19, saying in a statement that the campaign caused “deep pain to the victims and bereaved families of the May 18 Democratization Movement as well as to the public”.

Shinsegae fired the head of Starbucks Korea last week after apologising over the campaign. Starbucks Global also apologised and said that an investigation had begun.

A Shinsegae official said sales had fallen sharply since the marketing controversy.

“While sales are not our main concern at the moment, we have seen a very significant drop,” said the official.

At Tuesday’s news conference, Jeon Sangjin, a senior Shinsegae Group executive, said the company had yet to find conclusive evidence that Starbucks Korea marketing employees intended to mock the pro-democracy movement, an accusation the employees have denied.

However, he said some employees refused management requests to hand over their smartphones during a weeklong internal review.

Jeon said the company would look at the results from the police inquiry, and any employee found to have intended to ridicule protesters would be fired.

The anger over the campaign has triggered public calls for boycotts, amplified by government officials, including Interior and Safety Minister Yoon Ho-jung, who said Starbucks products will no longer be used at government events and lamented the chain’s “anti-historical behaviour”.

The country’s president, Lee Jae Myung, said on X last week that the campaign displayed “inhumane and disgraceful behaviour by cheap profiteers who deny the values of the South Korean community, basic human rights and democracy”.

Hundreds of people are estimated to have died ⁠or gone missing when Chun Doo-hwan’s military government cracked down on the protests in Gwangju.

Many details remain unconfirmed, including who gave the order to open fire.

Japan’s stock market surges to record high on hopes of an end to US-Israel war on Iran.

Oil prices have fallen sharply amid tentative hopes for a deal to end the US-Israel war on Iran.

Brent crude, the primary benchmark for global oil prices, fell about 5 percent on Sunday as US President Donald Trump gave mixed signals on the prospects for a permanent end to the conflict.

Brent futures for July stood at $98.47 a barrel as of 01:05 GMT, down about 9 percent from a month ago but still up by more than a third compared with before the start of the war.

Japan’s benchmark stock index, the Nikkei 225, surged more than 3 percent in morning trading, hitting an all-time high after closing at a record peak on Friday.

Trump said in a social media post on Sunday that negotiations with Tehran were proceeding in an “orderly and constructive manner”, but he had instructed officials “not to rush into a deal”.

“Both sides must take their time and get it right. There can be no mistakes!” Trump wrote on Truth Social.

Trump’s remarks came after he raised hopes for a breakthrough on Saturday by announcing that a deal had been “largely negotiated,” with the terms including the reopening of the Strait of Hormuz.

“Fundamentally, there is no change to the underlying picture, where 10-11 million barrels per day of crude oil continue to be shut-in for every day the Strait of Hormuz remains shut,” June Goh, a senior oil market analyst at Sparta in Singapore, told Al Jazeera.

“However, markets are expecting a gush of 100 million barrels of crude oil from the stranded ships to flow out once the deal is in place.”

Goh said markets are likely to remain on edge for some time after any deal is finalised.

“Sparta estimates still about three to six months required to get everything back to status quo, including time to bring production and refineries back online,” Goh said.

Iran has effectively blockaded the strait since the start of the war in late February, disrupting about one-fifth of the global oil trade.

The US has imposed its own blockade of Iranian ports since mid-April, further disrupting commercial shipping in the waterway.

In his Truth Social post on Sunday, Trump said the US blockade would remain “in full force and effect until an agreement is reached, certified, and signed”.

Cuba has announced the first shipment in an expected donation from China of about 60,000 tonnes of rice, as the Caribbean island contends with an ongoing humanitarian crisis.

In a series of social media posts on Sunday, Cuban President Miguel Diaz-Canel confirmed that the first load of 15,000 tonnes had arrived a day earlier in the port of Havana.

He also expressed “deep gratitude” to China, as well as to members of the European Parliament who denounced the pressure campaign his government faces.

Since January, the United States has increased its sanctions against Cuba, as part of a hardline turn under the second term of President Donald Trump.

“Thank you very much for the solidarity, and for the firm and unequivocal condemnation of the collective punishment to which our people are being subjected,” Diaz-Canel wrote, likening Cuba’s situation to “genocide”.

While Trump has sought to check China’s growing influence on Latin America, Cuba has increasingly relied on the Asian superpower for assistance.

Already, China has donated solar panels to Cuba to help update its ageing energy grid and transition the island away from fossil fuels. Currently, Cuba relies on imports for nearly 60 percent of its oil supply, according to the International Energy Agency.

But since the start of the year, the Trump administration has largely blocked the export of oil to Cuba.

The de facto oil blockade began shortly after January 3, when the US launched a military operation to abduct and imprison Venezuelan President Nicolas Maduro.

Trump followed that operation with the announcement that no more oil or funds would be transferred from Venezuela to Cuba.

By the end of the month, he had also issued an executive order identifying Cuba as an “unusual and extraordinary threat” to the US and threatening economic penalties to any country that supplies it with oil.

Since then, only a single Russian tanker has been permitted to reach the island. Earlier this month, Energy Minister Vicente de la O Levy announced that the island had exhausted its oil supplies.

While Cuba is no stranger to power outages, the recent crisis has caused island-wide blackouts and has brought public services — including transportation and medical care — to a standstill in many areas.

But Trump has continued to impose sanctions on the island’s communist government, in an apparent effort to force regime change.

Media reports have indicated he has sought Diaz-Canel’s resignation and would be open to a situation akin to Venezuela’s, where Maduro’s government has been left largely intact, though Maduro himself has been replaced.

Trump has also repeatedly suggested he may consider a military response should Cuba fail to give in to his demands, though his administration has sent mixed messages about possible intervention on the island.

“Other presidents have looked at this for 50, 60 years, doing something, and it looks like I’ll be the one that does it,” Trump said last week from the Oval Office.

Negotiations between the two countries, however, are likely to be strained after the Trump administration unveiled a murder indictment against Cuba’s former president, Raul Castro, for the 1996 downing of two planes run by Cuban exiles.

Since the 1960s, Cuba has been under a sweeping US trade embargo that has weakened its economy.

US officials, however, have blamed the Cuban government for economic mismanagement and the oppression of its people, particularly political dissidents.

Earlier this month, US Secretary of State Marco Rubio disclosed that the Trump administration offered $100m in humanitarian aid to Cuba, on the condition it implement “meaningful reforms”.

In Sunday’s posts, however, Diaz-Canel sought to project defiance in the face of Trump’s “maximum pressure” campaign.

“The ‘maximum pressure’ strategy — which some in the US morbidly trumpet — is part of a strategy intended to justify the false narrative of an impending collapse, and thereby pave the way for military intervention,” he wrote.

Diaz-Canel added that Cuba would continue to strengthen its ties with the US’s economic and political rival, China.

“The cherished bonds of friendship and cooperation that unite us grow stronger in these crucial times,” he said.