Starbucks Korea announced plans to close all its stores temporarily across the country in mid-June for staff training, an unprecedented move for the company. This decision comes in the wake of significant public backlash and a sharp drop in sales following a controversial 'Tank Day' marketing campaign launched on May 18, the anniversary of the 1980 Gwangju Uprising.
The 'Tank Day' campaign, which promoted a large tumbler, was perceived as mocking the victims of the Gwangju democratic movement, where tanks and troops were used to suppress pro-democracy demonstrators. The Gwangju Mayor, Kang Gi-jeong, specifically urged Starbucks Korea to close all its stores for staff education, stating that the company's actions demonstrated a lack of historical awareness.
The controversy led to the firing of Starbucks Korea CEO Sohn Jeong-hyun and multiple apologies from Chung Yong-jin, chairman of Shinsegae Group, which operates Starbucks Korea. Shinsegae, whose subsidiary E-Mart holds a majority stake in Starbucks Korea, reported a "very significant" drop in sales. The company also removed five employees involved in the campaign, who are now part of a police investigation following complaints from victims' families. Internal investigations by Shinsegae revealed a failure in risk management and a lack of awareness of South Korean history among some marketing employees and executives within the approval chain.
While the exact training schedule and duration have not been disclosed, Starbucks Korea stated the training will focus on South Korean history, culture, and social values to prevent similar incidents. This initiative seeks to rebuild public trust and address the perceived historical insensitivity that damaged the brand's reputation and financial performance in the market.
