South Korea's Starbucks to shut for staff history lesson after backlash

Starbucks Korea has announced that it will temporarily close all of its more than 2,000 stores for a half-day session on 22 June, allowing staff to participate in a mandatory history lesson and social sensitivity training. This decision comes in the wake of a highly controversial promotional campaign that drew sharp criticism and sparked public and political backlash. The company aims to address the concerns raised by the incident and ensure that such mistakes are not repeated in the future. The closure is expected to result in a loss of approximately 2.1 billion won ($1.4 million) in revenue, based on estimates from the data firm IGAWorks.

The controversy began on 18 May, the anniversary of the 1980 Gwangju Uprising, when Starbucks Korea launched a promotional campaign for its "Tank" tumbler series. The campaign included references that inadvertently evoked painful memories associated with the massacre, where at least 165 civilians were killed by military forces. The promotion featured slogans and imagery that were perceived as insensitive, including the use of the phrase "thwack on the desk," which recalled a notorious police justification for the 1987 torture death of student activist Park Jong-chul. The marketing team had chosen the slogan after consulting an AI tool for suggestions, although some managers did not review the attached materials before approving the campaign.

Following the launch of the promotion, there was immediate public outcry. Customers boycotted Starbucks stores, some smashed mugs and tumblers, and government ministries severed ties with the chain. The backlash forced Starbucks Korea to pull the campaign within hours, and the company’s chief executive was swiftly dismissed. In response, Starbucks issued a public apology, acknowledging the incident as "an unacceptable marketing incident" and expressing deep regret for the offense caused.

The company’s chairman, Chung Yong-jin, who operates Starbucks Korea under license from the US-based parent company, has taken personal responsibility for the situation. He issued both a written apology and delivered a televised press conference where he bowed three times in accordance with traditional expressions of remorse. Additionally, Starbucks' Seattle headquarters sent a direct apology to the May 18 Foundation, a prominent organization representing survivors of the Gwangju Uprising.

To address the issue internally, Starbucks Korea plans to provide its staff with educational content on modern Korean history and the importance of considering historical and social sensitivities in marketing strategies. The training will include video lectures and discussions aimed at increasing awareness among employees. The only exceptions to the store closures will be a few airport locations, which will remain open to accommodate travelers.

The Gwangju Uprising remains a deeply divisive topic in South Korean society, with far-right groups continuing to propagate a discredited narrative that the protesters were North Korean sympathizers. However, this claim was recently ruled false and defamatory by the Supreme Court. The incident has highlighted the need for greater cultural and historical sensitivity in corporate marketing, particularly in regions with complex historical legacies.

As the situation unfolds, the focus remains on the long-term impact of the controversy on Starbucks Korea’s reputation and operations. While payment volumes have shown some recovery, they still lag behind pre-controversy levels. The company faces the challenge of rebuilding trust with consumers and ensuring that future campaigns are thoroughly vetted to avoid similar missteps. Meanwhile, the broader implications of the incident continue to resonate throughout South Korean society, emphasizing the delicate balance between commercial interests and historical accountability.