Stock Markets June 15, 2026 01:38 AM

Starbucks Korea to Close Nationwide for Staff History and Sensitivity Training After Marketing Backlash

Operator Shinsegae Group orders store closures and revamped marketing checks following criticism and a steep drop in sales tied to a promotional campaign

By Hana Yamamoto
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SBUX

Starbucks Korea will close all its stores at 3 p.m. on June 22 for mandatory staff training on historical awareness and social sensitivity after a marketing promotion provoked public outrage and a significant fall in sales. Shinsegae Group, owner through affiliate E-Mart, has scheduled additional training sessions for headquarters staff and senior executives and will introduce new marketing approval procedures, including a social-sensitivity checklist.

Starbucks Korea to Close Nationwide for Staff History and Sensitivity Training After Marketing Backlash
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Key Points

  • All Starbucks Korea stores will close at 3 p.m. on June 22 for staff training on historical awareness and social sensitivity.
  • Shinsegae Group scheduled additional training for headquarters staff and executives and said it will introduce a marketing social-sensitivity checklist covering history, politics and other sensitive topics.
  • The move follows public backlash and a substantial sales decline after a 'Tank Day' promotion coinciding with the May 18 Gwangju Uprising anniversary; Starbucks Korea has over 2,000 stores and is the country's top coffee chain by customer payments.

Starbucks Korea will close every outlet in the country at 3 p.m. on June 22 so employees can receive training on historical awareness and social sensitivity, Shinsegae Group said on Monday. The decision follows strong public criticism and what the company described as a "very significant" decline in sales after a recent marketing promotion stirred controversy.


The chain's parent operator under Shinsegae Group said the full-day, nationwide early closure is intended to ensure staff across all locations receive the same instruction. Shinsegae also announced an internal training schedule: Starbucks Korea headquarters personnel and executives from Shinsegae's E-Mart division will attend a session on June 17 at the group's training centre, while Shinsegae Chairman Chung Yong-jin and fellow affiliate CEOs are set for a separate program on June 24.

The marketing campaign at issue, a 'Tank Day' tumbler promotion, coincided with the anniversary of the May 18 Gwangju Uprising - an event when the then-military government sent troops and tanks to put down pro-democracy demonstrations. The promotion drew widespread condemnation and was followed by a substantial drop in sales, according to the company statement cited by Shinsegae.


Shinsegae said the training will include a history awareness lecture led by a history professor from Sungkyunkwan University. That session will cover major events in South Korea's modern and contemporary history since the 1950s and address how those events should be understood. A separate social sensitivity module, taught by a sociology professor from the same university, will examine how firms ought to consider sensitive social topics - including history, labour, gender and human rights - in marketing and other corporate activities.

In addition to staff training, Starbucks Korea will change its marketing approval process. Shinsegae said the company plans to introduce a social-sensitivity checklist that explicitly covers areas such as history, commemorative dates, politics, disasters, military issues, gender, violence and hate expressions. The group framed these measures as reflecting how seriously it views the controversy and as steps to prevent a similar incident from occurring again.


Shinsegae said this action marks the first nationwide early closure of Starbucks Korea stores since the chain opened in the country in 1999. Starbucks Korea had more than 2,000 stores at the end of 2024, according to its annual impact report, and is the country's leading coffee chain by customer payments, as measured by data firm WISEAPP.

The company statement also noted that Shinsegae's E-Mart owns Starbucks Korea. Shinsegae Chairman Chung Yong-jin issued a public apology after the promotional campaign prompted the backlash.


Shinseaegae's steps include both immediate, company-wide instruction for frontline staff and targeted training for leadership, alongside formal changes to marketing governance. The history-focused lecture and the social-sensitivity seminar are intended to combine factual review of past events with guidance on corporate considerations for sensitive social issues when developing promotions and other customer-facing activities.

The group's announcements do not provide additional financial figures beyond noting the sales decline described as "very significant," and they do not specify further disciplinary measures or long-term policy changes beyond the new checklist and the scheduled trainings.

Risks

  • Reputational damage to Starbucks Korea and potential continued consumer pushback following the controversial promotion, affecting the retail and foodservice sectors.
  • Operational disruption from the nationwide early closure and required staff retraining, which could further influence short-term sales in the coffee and retail sectors.
  • Uncertainty about the sufficiency of governance changes, including the new marketing approval checklist, to prevent future incidents; this impacts brand management and corporate communications strategies.

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