Starbucks Korea has fired its chief executive after revelations that the company celebrated a “Tank Day” to mark the anniversary of a disgraced South Korean dictator’s rise to power. The scandal, which sparked fury among workers and customers, has taken a curious twist: the company justified its decision by citing the UK Corporate Governance Code, a set of standards for boardroom behaviour that is increasingly influencing global firms.
The “Tank Day” event, held at a Seoul branch in April, was meant to commemorate the 1961 military coup led by Park Chung-hee, whose authoritarian rule is still a raw nerve for many Koreans. Staff were photographed posing with a cardboard tank and a cake decorated with the South Korean flag. A leaked internal memo described the celebration as “fun”. But for labour groups and human rights activists, it was a crass glorification of a man who crushed unions and stifled dissent.
Starbucks Korea’s parent company, E-Mart, a subsidiary of Shinsegae Group, moved quickly. The CEO was removed, and the company apologised. In a statement, Shinsegae said the decision was taken “in accordance with the principle of accountability under the UK Corporate Governance Code”. This code, though not binding, stresses the importance of ethical leadership and corporate responsibility. It is a rare instance of a British regulatory framework being invoked in a labour and cultural dispute on the other side of the world.
For workers in South Korea, the scandal is part of a wider pattern. Park’s legacy is still contested. His daughter, Park Geun-hye, was impeached in 2017 for corruption. But many older Koreans credit him with industrialising the country, even at the cost of democratic freedoms. Young workers, however, see him as a symbol of suppression. Starbucks Korea employs over 10,000 baristas, many of whom are in their twenties and thirties. They have faced stagnant wages and intense pressure to meet sales targets. The “Tank Day” incident became a flashpoint for their frustrations.
“This is what happens when companies forget who they serve,” said Kim Min-ji, a union organiser at a Seoul cafe chain. “They celebrate dictators while underpaying staff. The sacking is a start, but what about the workers who were forced to smile for that photo?”
The UK Corporate Governance Code, updated in 2018, emphasises board diversity, employee engagement, and whistleblowing. It is normally applied to listed British companies. But its use here signals a global shift. Investors, particularly from the UK and the US, are demanding higher standards from their foreign subsidiaries. Starbucks Korea is a wholly owned affiliate of Starbucks Corporation, which is headquartered in Seattle but has a major shareholder base in London.
The sacking has divided opinion. Some business commentators argue that it sets a dangerous precedent: that cultural mistakes can cost executive jobs, stifling innovation. “Corporate governance codes are not meant to be weapons,” said one analyst. But union leaders disagree. They say that workers have long been silenced by a corporate culture that ignores their voices. The UK code explicitly calls for “engagement with the workforce”. Starbucks Korea now has a chance to rebuild trust.
The cost of living crisis in South Korea is acute. Youth unemployment hovers near 9%. A coffee shop job is often the only option for young people outside Seoul. Wages have barely kept up with rents, which have doubled in five years. The “Tank Day” scandal may have been a tipping point, not just for Starbucks, but for an entire generation of precarious workers.
Starbucks Korea has promised a review of its workplace culture. But without concrete changes to pay and conditions, the sacking of a CEO will ring hollow. As one barista told me: “We don’t need a new boss. We need a living wage.”
