Key facts
- Starbucks Korea will close over 2,000 stores at 3 p.m. on June 22 for mandatory history and social sensitivity training.
- The training is a response to backlash over a 'Tank Day' promotion that coincided with the anniversary of the 1980 Gwangju Uprising.
- The promotion's timing and slogan were perceived as insensitive, referencing a massacre and a torture death cover-up.
- Shinsegae Group chairman Chung Yong-jin apologized and will attend the training, as will other executives.
- The closures are expected to cost an estimated $1.4 million in lost sales.
Starbucks Korea will temporarily close all its stores nationwide at 3 p.m. on June 22 for mandatory history and social sensitivity training, following significant public and political backlash over a marketing campaign. The coffee chain faced outrage when its 'SS Tank' tumbler promotion, declared 'Tank Day' on May 18, coincided with the anniversary of the 1980 Gwangju Uprising, a brutal military suppression of pro-democracy protesters.
The campaign, which also used the slogan 'thwack on the desk', evoking a notorious police explanation for a 1987 torture death, was perceived by many as mocking victims of the crackdown. The promotion triggered immediate criticism, store boycotts, and a significant drop in sales.
In response, Shinsegae Group, which operates Starbucks Korea under license, canceled the promotion within hours and fired the chief executive of Starbucks Korea. Shinsegae Chairman Chung Yong-jin issued a televised apology and will attend the training alongside other executives on June 24. The curriculum covers contemporary Korean history and marketing sensitivities. The company stated the shutdown underscores the seriousness with which it views the incident and aims to prevent future controversies.
Payment volumes, which plunged 26% in the week after the controversy, have shown signs of partial recovery but remain about 25% below pre-controversy levels. A police investigation into the marketing campaign is ongoing.