Starbucks Korea is set to close all its stores for a mandatory history lesson following a controversial promotion that sparked public outrage. The company will shut down over 2,000 locations at 3 PM on June 22, 2023, to allow employees to participate in recorded lectures on modern Korean history and engage in social sensitivity training.

Background of the Controversy
The decision to close stores comes in the wake of a disastrous promotion for Starbucks' "Tank" tumbler series on May 18, the anniversary of the Gwangju massacre, which saw military forces violently suppress pro-democracy protests in 1980. The promotion, branded as "Tank Day," and its accompanying slogan, which referenced a notorious police explanation for the torture death of a student activist, led to immediate backlash. Customers boycotted the brand, vandalized merchandise, and government ministries severed ties with the coffee chain.

Financial Impact and Recovery Efforts
The half-day closures are expected to cost Starbucks approximately 2.1 billion won, or $1.4 million, in lost sales. Payment volumes at Starbucks locations plummeted by 26% in the week following the promotion, although there are signs of recovery with a 12.8% increase in the first week of June. However, sales remain about 25% below pre-controversy levels.

Corporate Response and Accountability
Chung Yong-jin, the chair of Shinsegae Group, which operates Starbucks Korea, will also undergo the same training on June 24 alongside other executives. The curriculum will cover major events in contemporary Korean history and emphasize the importance of historical and social sensitivities in marketing strategies. The company has publicly acknowledged the severity of the incident and expressed its commitment to preventing similar controversies in the future.

Apologies and Future Measures
Starbucks has issued multiple apologies, including a written statement to the May 18 Foundation, which represents victims of the Gwangju massacre. The company described the marketing incident as "unacceptable" and stated that it "should never have happened." Following the backlash, the chief executive was dismissed, and the company is taking steps to ensure that its marketing decisions are informed by a deeper understanding of historical contexts.

Wrap-up
Starbucks Korea's decision to close all stores for history training reflects a significant corporate response to a marketing misstep that resonated deeply with the public. As the company navigates the fallout from this incident, it aims to rebuild trust and demonstrate a commitment to social responsibility.

Sources
theguardian.com

@hoju-korean.com Editorial Team