Starbucks Korea dismisses rumour of massive store closure

The claim was shared here on Facebook on August 1, 2021.

"Finally. Starbucks is out of Korea. Starbucks has decided to sell all of its shares in the Korean business, shutting down all 1,580 branches. It's exiting the second most profitable market in the world," the Korean-language claim reads.

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Screenshot of the misleading Facebook post, captured on August 3, 2021. ( AFP)

The claim began to circulate after Starbucks announced on July 26 2021 that it would sell its 50 percent ownership share of Starbucks Coffee Korea, a 50/50 joint venture between Starbucks and E-Mart, one of the largest retailers in South Korea.

Starbucks said 17.5 percent would be sold to E-Mart, while the rest would be purchased by Singaporean sovereign wealth fund GIC.

Claims that this will result in branches being shut down have also been shared on Facebook here, here and here.

However, a spokeswoman for Starbucks Coffee Korea told AFP that the claim on store closure is baseless. 

"I can confirm that it is absolutely false," they said during a phone interview on August 2, 2021. 

The company has also released a statement saying its business in South Korea will not be affected. 

"E-Mart announced on 27th that it would acquire 17.5 percent out of 50 percent shares in Starbucks Coffee Korea owned by Starbucks International. This means Shinsegae Group [the parent company of E-Mart] would become the largest shareholder of Starbucks Coffee Korea with 67.5 percent of shares," said Starbucks Coffee Korea in the statement on July 27, 2021.

"Starbucks' operations in South Korea following the acquisition of the shares will remain stable, as they have previously done. The company will maintain and develop customer service and employee welfare," it added.