Starbucks Korea reports first quarterly loss in 27 years

Starbucks Korea, operated by SCK Company, reported an operating loss of 18.4 billion won in the second quarter, marking the company’s first quarterly loss since entering the South Korean market 27 years ago. The financial downturn is attributed to a consumer boycott following a controversial May marketing campaign.

The campaign, which featured “Tank Day” and “Tank” series tumblers, was widely criticized for appearing to mock the 1980 Gwangju Democratic Uprising, during which government troops used tanks to suppress pro-democracy activists. Critics also noted that phrases like “slam on the desk” echoed historical accounts of police torture.

In response to the backlash, Starbucks Korea withdrew the campaign and dismissed its CEO. Shinsegae Group Chair Chung Yong-jin issued an apology, and Emart, which holds a 67.5 percent stake in SCK Company, noted that the controversy contributed to a consolidated operating loss of 43 billion won for the conglomerate, despite growth in other core retail sectors.