Why Starbucks Korea is shutting all stores on June 22
What's the story
Starbucks Korea will temporarily shut down all its stores nationwide except a handful of airport outlets on June 22 for a mandatory history lesson. The decision comes after a marketing campaign that was widely criticized for being insensitive to the Gwangju Uprising of 1980. The campaign, which promoted stainless-steel tumblers called "SS Tank," declared May 18 as "Tank Day," the anniversary of the Gwangju pro-democracy uprising.
Campaign fallout
Campaign's slogan also drew ire
The marketing campaign was further criticized for its slogan "Thwack it on the table!" which many interpreted as a reference to a notorious 1987 police statement about student activist Park Jong-chol's torture death. The backlash included store boycotts and customers breaking Starbucks products. In response, Shinsegae Group, which operates Starbucks Korea under license, canceled the campaign within hours and fired Starbucks Korea's CEO.
Training and losses
First-ever closure of all stores
Shinsegae Chairman Chung Yong-jin will also attend the training session on June 24. The decision to close all stores early is a first since Starbucks launched in South Korea in 1999. The half-day closure is expected to cost Starbucks an estimated 2.1 billion won ($1.4 million) in lost sales, according to data firm IGAWorks.
Apology and investigation
Ongoing police investigation
Chung has publicly apologized for the incident, including a televised press conference where he bowed three times. An internal investigation found no deliberate intent behind the marketing campaign, but a police investigation is ongoing. Seoul police have registered Chung and the former CEO as criminal suspects in connection with this case.