Shinsegae Group will shut more than 2,000 locations at 3 p.m. on June 22 after a marketing campaign evoked a 1980 massacre
Credit: rawkkim / Unsplash
Starbucks $SBUX Korea will close all of its stores nationwide at 3 p.m. on June 22 so employees can receive mandatory history and social sensitivity training, Shinsegae Group said Monday, following a marketing campaign widely seen as mocking victims of a 1980 military crackdown on pro-democracy protesters.
The closure will be the first nationwide early shutdown since the chain opened in South Korea in 1999, the company said. Shinsegae, which holds a 67.5% stake in Starbucks Korea, framed the move as a signal of how seriously it views the incident and its commitment to preventing a repeat. Store employees will watch a recording of a training session led by history and sociology professors from Sungkyunkwan University, the company said. Shinsegae Chairman Chung Yong-jin and chief executives from Shinsegae affiliates will attend a separate session on June 24.
Data firm IGAWorks estimates the early shuttering will result in approximately 2.1 billion won ($1.4 million) in foregone revenue.
The training stems from a promotion for a line of stainless-steel tumblers branded "SS Tank," in which Starbucks Korea designated May 18 as "Tank Day." That date marks the anniversary of the Gwangju Uprising, when South Korea's military government deployed troops, tanks, and helicopters against pro-democracy demonstrators, killing or injuring hundreds. A second element of the campaign drew its own wave of condemnation: the slogan "Thwack it on the table!" Many Koreans recognized the phrase as an echo of the infamous 1987 police cover story surrounding the death of student activist Park Jong-chol, in which authorities claimed — falsely — that he had died after an officer struck a desk during interrogation. Park had in fact been tortured.
According to Shinsegae, the "thwack" phrasing originated from an AI tool queried for slogan ideas, and an internal review revealed that certain approving managers had not viewed the attached files showing the actual campaign content. The company said it found no evidence of deliberate intent, though a police investigation is ongoing.
The promotion was pulled within hours of launch. Starbucks Korea's chief executive was fired the same day, and Chairman Chung Yong-jin apologized in a nationally televised press conference. The fallout extended to store boycotts, customers destroying Starbucks merchandise, and government ministries severing ties with the chain.
Transaction data cited by The Guardian show the brand absorbed a 26% drop in payment volumes immediately after the scandal broke. A partial rebound of 12.8% was recorded in early June, yet spending at Starbucks Korea locations is still running roughly a quarter below where it stood before the controversy.
The new training curriculum will cover major events in South Korea's modern history and address how companies should account for historical and social sensitivities in marketing decisions, Shinsegae said. Shinsegae said a broader redesign of how marketing campaigns are vetted is also underway, with a new social-sensitivity screening tool to be introduced that will require teams to assess content against categories such as historical events, commemorative dates, political topics, disasters, military references, gender, violence, and hate speech.
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