Starbucks Korea to temporarily shut all stores for history lesson after bungled coffee promotion | South Korea
Starbucks Korea will close all of its stores at once for an obligatory history lesson after a disastrous promotion that evoked memories of a pro-democracy massacre sparked public and political backlash.
More than 2,000 stores will temporarily close at 3pm on June 22 so staff can watch recorded lectures on modern Korean history and participate in “social awareness” training, the company said. The half-day closure will cost Starbucks an estimated 2.1 billion won ($1.4 million) in lost sales, according to data firm IGAWorks.
The measures follow a public relations crisis triggered by Starbucks Korea’s discount promotion for its “Tank” cup line on May 18, the anniversary of the 1980 massacre in Gwangju. The promotion led to store boycotts, customers smashing Starbucks cups and glasses, and government ministries cutting ties with the chain.
Chung Yong-jin, the billionaire chairman of Shinsegae Group, which operates Starbucks Korea under a license from its US parent company, will receive the same training on June 24, along with other executives.
The curriculum covers major events in contemporary Korean history and how companies should take historical and social sensitivities into account in their marketing decisions.
Shinsegae said the purpose of the closure was to show how serious it was looking at the incident and to prevent similar discussions from recurring. A company spokesman said the only exceptions to the shuttering would be a handful of outlets at airports.
Payment volumes, which fell 26% in the week after the debate, showed partial signs of recovery, rising 12.8% in the first week of June, according to market data, but still remain around 25% below pre-debate levels.
The Gwangju massacre is a painful memory for many. Paratroopers suppressed pro-democracy protests against military dictator Chun Doo-hwan for more than 10 violent days. Victim groups say hundreds were killed.
Starbucks branded the launch date as “Tank Day.” It also featured the slogan “hit the table,” evoking the infamous police statement about the 1987 torture death of student activist Park Jong-chul. Authorities falsely claimed that he died after being hit by a police officer who “hit the table” during interrogation.
Shinsegae Group said marketers chose the “horse” slogan after consulting an AI tool for suggestions. It turned out that some managers who approved the campaign never opened email attachments showing the marketing material.
The company withdrew the campaign within hours, but the consequences were swift and the chief executive was dismissed the same day.
Starbucks said it was “deeply sorry for this unacceptable marketing incident” and that it “should never have happened.” Chung issued a written apology and also bowed three times during a televised press conference.
Starbucks’ Seattle headquarters sent a written apology directly to the May 18 Foundation, one of the main bodies representing Gwangju victims, after the foundation wrote to the company demanding a formal response.
An internal investigation found no evidence of premeditation, but a police investigation is ongoing. Chung and the former CEO were registered as criminal suspects by Seoul police.
Attitudes towards the Gwangju Uprising remain one of the deepest fault lines in South Korean society.
Far-right groups have kept alive the decades-old, discredited state narrative that Gwangju protesters were North Korean sympathizers; This allegation was ruled false and defamatory by the high court earlier this year.
