Read on the GuardianStarbucks Korea to Close All Stores for Mandatory History Lesson After Controversial Promotion
Starbucks Korea will temporarily close all of its 2,000+ stores on 22 June for a mandatory history lesson following a disastrous promotion that evoked memories of the 1980 Gwangju massacre. The half-day closures are expected to cost the company approximately 2.1bn won ($1.4m) in lost sales, according to data firm IGAWorks. The controversy began when Starbucks Korea ran a discount promotion for its 'Tank' tumbler series on 18 May, the anniversary of a pro-democracy massacre. The promotion sparked public outrage, boycotts, and political backlash, leading to the CEO being sacked and government ministries cutting ties with the chain.
Starbucks Korea has announced that it will close all of its more than 2,000 stores nationwide on 22 June for a mandatory history lesson and social sensitivity training, following a public relations crisis that erupted after a controversial promotion. The company stated that employees will watch recorded lectures on modern Korean history, and the half-day closures are estimated to cost the company an equivalent of $1.4 million in lost sales, according to data from IGAWorks.
Background of the Controversy
The crisis was triggered when Starbucks Korea ran a discount promotion for its “Tank” tumbler series on 18 May, which is the anniversary of a 1980 pro-democracy massacre in Gwangju. The promotion involved the slogan “Tank Day” and used a phrase “thwack on the desk”, which evoked a notorious police explanation for the 1987 torture death of a student activist. These references immediately sparked public outrage and political backlash, prompting accusations that the company was trivializing a painful chapter in Korean history.
Impact and Immediate Response
The fallout from the promotion was swift and severe. Starbucks customers began boycotting stores, and some even smashed Starbucks mugs and tumblers in protest. Several South Korean government ministries also cut ties with the chain. In response, Starbucks Korea pulled the campaign within hours, and its chief executive was sacked the same day. The company issued a public apology, and Chung Yong-jin, the billionaire chair of Shinsegae Group which operates Starbucks Korea under license, also issued a written apology and bowed at a televised press conference. An internal investigation found no evidence of deliberate intent, though a police investigation is ongoing.
The History Lesson and Store Closures
To demonstrate the seriousness of the incident and prevent future controversies, Shinsegae Group decided to close all stores at 3pm on 22 June for training. The curriculum will cover major events in contemporary Korean history and how companies should account for historical and social sensitivities in marketing decisions. Chung and other executives will also undergo the same training on 24 June. The only exceptions to the closures will be a handful of outlets at airports. The company spokesperson said the shutdown is intended to show the company’s commitment to learning from the incident.
Ongoing Aftermath and Recovery
The controversy has had a measurable effect on Starbucks Korea’s business. Payment volumes plunged 26% in the week after the promotion, and although they showed a 12.8% recovery in the first week of June, they remain about 25% below pre-controversy levels. The Gwangju massacre remains a deeply painful memory, with victims’ groups saying hundreds were killed during the violent crackdown. The incident has also reignited debates about corporate sensitivity and the responsibility of companies to understand historical context in their marketing. The case serves as a stark reminder of the potential consequences when global brands fail to respect local historical sensitivities.
