"May 18 Defamation Controversy"... Government Reviews Revoking Starbucks Award Over 'Social Disgrace'

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[Financial News] The government has internally discussed whether to revoke a government award previously given to Starbucks Korea, which has come under fire over accusations that it disparaged the May 18 Democratic Uprising. As Starbucks Korea faced public criticism over its ill-timed marketing tied to May 18, attacks from the government, the ruling party, and candidates in the local elections have also continued.
According to the industry on the 24th, the Ministry of SMEs and Startups reviewed whether to revoke the government commendation given to Starbucks in connection with the controversy over its alleged disparagement of the May 18 Democratic Uprising.
Last November, Starbucks received a Prime Minister's Commendation in the category of contributions to win-win growth among organizations. The award recognized its efforts to support the development of shared-value beverages using local specialties, help flood-damaged and aging small business cafe facilities, and support Korean farmers.
Government awards are part of a system promoted by the Ministry of SMEs and Startups and the Korea Commission for Corporate Partnership to encourage win-win growth between large and small companies. In the award review process, the ministry and others check the applicant's criminal record, industrial accidents, unfair business practices, and any social disgrace. After public verification, the Ministry of the Interior and Safety (MOIS) makes the final review and decision.
Under the Decorations Law, decorations or medals may be revoked if the recipient's achievements are found to be false, if the person is convicted of a crime related to national security, or if a death sentence, life sentence, or prison term of at least one year is finalized. The Government Awards Work Guidelines, announced earlier this year by MOIS, also state that awards may be revoked at any time if social controversy arises and an early cancellation is deemed necessary.
The Ministry of SMEs and Startups reviewed whether Starbucks' submitted record of achievements was linked to the current controversy, but decided not to put the matter forward for revocation, saying it did not meet the conditions for cancellation. While acknowledging that the issue has become a social controversy, the ministry said there is no direct connection between Starbucks' past achievements and the current dispute. However, the case is expected to affect future award reviews.
Meanwhile, boycott movements against Starbucks products are spreading ahead of the local elections, with some campaign headquarters and labor groups joining in. On the conservative side, a counter-movement encouraging people to patronize Starbucks is also emerging.
mj@fnnews.com Park Moon-soo Reporter