Starbucks Korea to Provide History Training After Campaign Backlash

• The 'Tank Day' tumbler promotion launched on May 18, the anniversary of a brutal 1980 military crackdown on pro-democracy protesters in Gwangju where troops and tanks suppressed demonstrations
• This marks the first nationwide early closure of Starbucks Korea stores since the chain opened in 1999, affecting over 2,000 locations across the country
• Starbucks Korea is overhauling marketing approval procedures with a new social-sensitivity checklist covering history, commemorative dates, politics, disasters, gender, violence and hate expressions

Summary

Key Development: Starbucks Korea will close all stores at 3 p.m. on June 22 for mandatory staff training on historical awareness and social sensitivity following severe backlash over a marketing campaign.

The Controversy: The coffee chain faced widespread criticism and "very significant" sales declines after launching a "Tank Day" tumbler promotion on May 18, coinciding with the anniversary of the 1980 Gwangju Uprising. The military crackdown on pro-democracy protesters in that event involved tanks and resulted in brutal suppression.

Company Response:

• Shinsegae Group's E-Mart affiliate, which owns Starbucks Korea, organized comprehensive training sessions
• Headquarters staff and executives will train on June 17
• Chairman Chung Yong-jin and affiliate CEOs will attend a separate session on June 24
• This marks the first nationwide early closure since Starbucks entered South Korea in 1999

Training Details: Led by professors from Sungkyunkwan University, sessions will cover:

• Major events in South Korean modern history since the 1950s
• Corporate consideration of social issues including history, labor, gender, and human rights in marketing

Operational Changes: Starbucks Korea plans to overhaul marketing approval procedures, introducing a social-sensitivity checklist covering history, commemorative dates, politics, disasters, military issues, gender, violence, and hate expressions.

Market Position: Despite the controversy, Starbucks Korea maintains market leadership with over 2,000 stores as of end-2024 and ranks as the country's #1 coffee chain by customer payments, according to WISEAPP data.

Market Implications: The incident highlights reputational and financial risks companies face from culturally insensitive marketing in markets with complex historical contexts.