Starbucks Korea Closes Stores for Training After Controversial Marketing Campaign
Starbucks' South Korean operation announced it will close all its nationwide stores early on June 22 to conduct mandatory history and social sensitivity training. This decision follows widespread backlash over a recent marketing campaign that was perceived as mocking victims of the 1980 Gwangju pro-democracy crackdown. The controversial campaign involved promoting stainless-steel tumblers called "SS Tank" and declaring May 18 as "Tank Day," coinciding with the Gwangju uprising anniversary. The campaign also used the slogan "Thwack it on the table!," which many interpreted as a reference to a 1987 police statement covering up a torture death.
Starbucks Korea has announced it will close all its stores nationwide early on June 22 to facilitate mandatory history and social sensitivity training for employees. This measure comes in response to significant public backlash over a recent marketing campaign widely criticized for appearing to mock victims of the brutal military crackdown on pro-democracy protesters in Gwangju in 1980.
Shinsegae Group, which holds a 67.5% stake in Starbucks Korea, stated that its executives and employees at Starbucks Korea's headquarters would attend training led by history and sociology professors on Wednesday. All Starbucks stores are scheduled to close at 3 p.m. next Monday, June 22, to allow employees to view a recording of this session.
The controversy began when the coffee chain promoted a series of stainless-steel tumblers under the name "SS Tank" and designated May 18 as "Tank Day." May 18 marks the anniversary of the 1980 pro-democracy uprising in Gwangju, which was violently suppressed by Seoul's military government, resulting in hundreds of deaths or injuries.
Further fueling public anger, the campaign's slogan, "Thwack it on the table!," was seen by many as a direct reference to a notorious 1987 police statement that attempted to cover up the torture death of student activist Park Jong-chol. Authorities had falsely claimed Park died after investigators "hit the desk with a thwack."
Following immediate backlash, Shinsegae canceled the promotion within hours and fired the chief executive of Starbucks Korea. Shinsegae Chairman Chung Yong-jin subsequently issued a nationally televised apology. A police investigation was initiated after complaints were filed by relatives of the Gwangju crackdown victims. Chung is also scheduled to undergo separate training with the chief executives of Shinsegae affiliates on June 24.
Shinsegae noted that the decision to close all Starbucks stores early, marking a first since the chain's 1999 launch in South Korea, and to mandate company-wide training, demonstrates the company's serious view of the marketing controversy and its commitment to preventing a recurrence.
The Gwangju crackdown occurred months after General Chun Doo-hwan seized power in a coup in late 1979. Government records indicate approximately 200 deaths in Gwangju, though activists contend the actual death toll was considerably higher. Public outrage over Chun’s dictatorship later led to widespread protests in 1987, ultimately prompting him to accept constitutional revisions introducing direct presidential elections, a pivotal moment in South Korea's transition to democracy.
According to Fortune, this story was originally featured on Fortune.com.
