Paul Shin and his wife Isabella were bashed in their Terrigal shop three days before Australia Day by a 17-year-old who, in company with three teenage mates, repeatedly yelled "f--- off home you Asians".

But community anger at the attack has turned to outrage over the handling of an extraordinary offer by the Shins to accept an apology from the boy rather than see him charged, and news they are selling their shop and leaving the area.

Former Korean Army lieutenant, high school teacher and counsellor Paul Shin shows off a black eye after a vicious attack by a 17-year-old in his general store. Credit:Newcastle Herald

"My wife is still shocked. I want to forget a bad memory," Mr Shin, a former Korean Army lieutenant, high school teacher and counsellor, said.

Terrigal residents, including writer Nikki McWatters, have demanded answers after a senior police officer was quoted in a local media article describing the vicious attack as "children doing the wrong thing", and the teenager's mother was quoted saying her son had only "accidentally elbowed" Mrs Shin, but had cried, apologised and realised "how silly he was".