"I Won't Drink Starbucks Anymore"... Shinsegae Responds to 'Anti-Communist Controversy' Saying "We Won't Do It Anymore" (Summary)

Shinsegae Stock Price Drops Amid Boycott Signs
Jung Yong-jin Says, "I Will Stop Mentioning 'Myeolgong'"

The photo shows a Starbucks store in Jung-gu, Seoul. [Image source=Yonhap News]

[Asia Economy Reporter Kang Juhee] Jung Yongjin, Vice Chairman of Shinsegae Group, has been causing waves with his repeated 'Myeolgong (滅共, anti-communism)' remarks. The controversy has spread to the political sphere, with some members of the ruling party declaring a 'boycott movement' against Shinsegae Group affiliates such as E-Mart and Starbucks. On the 10th, Vice Chairman Jung announced that he would no longer make comments related to Myeolgong.

On the 10th, images bearing the phrase "Boycott Jung Yongjin, We Won't Go. We Won't Buy" rapidly spread across online communities and social networking services (SNS). This phrase closely resembles images that circulated online during the Japan boycott movement, with 'Jung Yongjin' replacing the word 'Japan.'

Hyun Geun-taek, spokesperson for the Democratic Party's Election Countermeasures Committee, posted on his Twitter on the 9th./Photo by Hyun, spokesperson's Twitter capture

Hyun Geuntaek, spokesperson for the Democratic Party's election committee, posted on his Twitter on the 9th, "I will no longer drink Starbucks coffee." The next day, he appeared on CBS Radio's 'Kim Hyunjung's News Show' and criticized the 'Myeolgong relay' supporting Vice Chairman Jung's remarks, mainly from the opposition, calling it an "Ilbe-like game."

He said, "It's really unfortunate. (Vice Chairman Jung) initially posted a photo of Xi Jinping (President of China). That’s when the problem escalated," adding, "There have been painful moments like E-Mart withdrawing from China due to the THAAD issue, but our country's position is not such that we can have that kind of relationship with China. China is our top trading partner, so is it really appropriate to act like this? As a large conglomerate owner, this is a very serious issue, and what’s more serious is that Yoon Seok-yeol, the People Power Party's presidential candidate, is blindly following along."

Kim Yongmin, a political commentator known as a supporter of Democratic Party presidential candidate Lee Jae-myung and a former member of the podcast 'Naneun Kkomsuda (NaKkomsu),' declared on Facebook, "Jung Yongjin has not only belittled consumers but also jumped into election campaigning, so I cannot go to his stores," adding, "I will cut off visits to E-Mart, Starbucks, No Brand, and Shinsegae both online and offline."

Jung Yong-jin, Vice Chairman of Shinsegae Group. Photo by Shinsegae Group

Due to Vice Chairman Jung's successive Myeolgong remarks, Shinsegae's stock price plunged sharply on the 10th. According to the Korea Exchange, Shinsegae's stock closed at 233,000 won, down 17,000 won (6.8%) from the previous day. At one point during trading, it dropped by about 8%.

As the stock price plummeted and boycott sentiment began to spread, Vice Chairman Jung announced on the same day that he would stop making Myeolgong-related remarks. According to an MBN report, Vice Chairman Jung said, "If I had sensed that it would cause controversy politically, I would not have made the remarks," adding, "It was frustrating that both ruling and opposition parties politically exploited my everyday personal thoughts. Now that I understand, I will stop."

On the same day, Vice Chairman Jung drew a line against speculation about entering politics by posting on Instagram, "I was born into a family of businesspeople and will live and die as a businessman. I have no career concerns, so please stop talking about politics."

He added, "If the sense to calculate that my everyday language could be used politically and the quick wit to know where to tie my gatkeun (traditional Korean hat string) are qualities of a businessman, then I will cultivate them."