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Recent Editions
Risk Channel
North America
Shinsegae Group chair Chung Yong-jin has issued a personal public apology after Starbucks Korea faced mounting criticism over a marketing campaign accused of mocking South Korea’s pro-democracy history. The retailer's subsidiary E-Mart owns the coffee chain in South Korea. The controversy centered on a May 18th “Tank Day” promotion tied to Starbucks tumblers, which critics said referenced the military crackdown during the 1980 Gwangju Democratic Uprising. The campaign also used wording linked to the torture death of student activist Park Jong-chul, a pivotal moment in South Korea’s democracy movement. Chung said the company had “hurt the hearts” of citizens and accepted full responsibility for the incident. The backlash intensified after Starbucks Korea chief executive Sohn Jeong-hyun was dismissed on the day the promotion launched, with critics accusing management of attempting to deflect blame. Shinsegae said an internal investigation has not found evidence that employees intentionally mocked the democracy movement, although the company warned any staff found to have acted deliberately would be dismissed. The retailer also acknowledged that sales have fallen sharply since the controversy erupted.
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Risk Channel
UK/Europe
A rift between the European Central Bank (ECB) and banks keen to protect revenues is hampering efforts to curb the region's dependence on US payments giants and build a home-grown system, according to people involved. The ECB wants to introduce a digital euro by 2029, but European banks are concerned that this would see customers transfer cash from them to the safety of an ECB-guaranteed wallet. On Wednesday, 25 more banks, including ABN Amro and Sabadell, joined a European consortium which plans to launch a euro-pegged cryptocurrency. "Europe is moving toward payment sovereignty by developing both private interoperable payment solutions and the digital euro. The real challenge is to make the development of both options compatible and efficient without imposing additional costs on citizens," Fernando Navarrete, the EU lawmaker overseeing the legislation, told Reuters.
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