Starbucks in South Korea closed more than 1,500 stores for four hours on Thursday to provide employees with a lesson in Korean history. The move follows a backlash over the company’s use of a term critics say evokes Japan’s 1910-45 colonial rule.
The coffee chain faced calls for a boycott after it offered a product labelled “Liberation Day” without reference to Korea’s independence from Japan. The term “Liberation Day” is used in both Koreas to mark the end of colonial rule on August 15.
Starbucks Korea, a joint venture with the local conglomerate E-Mart, said the training session would cover “the history and meaning of Korea’s liberation” and would be attended by 30,000 employees. The company apologised for causing “discomfort and concern”.
The controversy began when Starbucks launched a “Liberation Day” drink and a matching red-and-blue cup design. Critics said the term was a sanitisation of the colonial era, which saw the forced assimilation of Koreans and the suppression of their culture.
The incident comes as South Korea’s conservative government pushes for closer ties with Japan. Public sentiment towards Japan remains deeply divided. A recent survey showed that 51 per cent of South Koreans have favourable views of Japan, but many older Koreans still harbour resentment over colonial abuses.
Starbucks’ response appears to be an attempt to avoid a repeat of past corporate scandals. In 2018, a local franchise of the US retailer Costco faced a boycott after it sold T-shirts bearing the Japanese Rising Sun flag. The flag is seen by many in Asia as a symbol of Japan’s militarist past.
Corporate Korea has increasingly been forced to confront its colonial legacy. In 2020, the country’s largest online retailer, Coupang, was criticised for selling a product that referenced the colonial era. The company removed the listing and issued an apology.
Starbucks’ decision to close its stores for a history lesson is a costly one. The company said it expected to lose about 1 billion won ($840,000) in sales. But the move may help to restore its reputation in a market where brand loyalty is often tied to social responsibility.
The company’s apology appeared to be accepted by many consumers. On social media, some praised Starbucks for taking the issue seriously. Others, however, said the company should have known better.
The incident highlights the risks for multinational companies operating in countries with sensitive histories. Starbucks has faced similar challenges in other markets. In China, the company opened a store in Beijing’s Forbidden City in 2000, but withdrew after complaints that it was disrespectful to Chinese culture.
South Korea’s Starbucks franchise is one of the most successful in Asia, with more than 2,000 stores. The company has faced criticism before for its labour practices and high prices. But this is the first time it has closed its entire network for employee training.
The move is likely to be studied by other companies. As global brands expand into markets with complex histories, they are increasingly expected to show cultural sensitivity. The cost of getting it wrong can be high. In 2017, McDonald’s in South Korea faced a boycott after it used an image that evoked the colonial era. The company apologised and removed the image.
Starbucks’ decision to close for a history lesson is a bold step. It remains to be seen whether other companies will follow suit.
