Starbucks Korea sinks into loss after controversial promotional event
Starbucks Korea operator SCK Company has swung to an operating loss in the second quarter, following a controversial promotional event that drew nationwide criticism for allegedly insulting victims of the bloody crackdowns on major pro-democracy uprisings in the 1980s, prompting some consumers to launch boycotts. During an earnings call Thursday, Emart, which operates SCK Company, said the coffee…
Starbucks Korea, operated by SCK Company, reported an operating loss in the second quarter due to a highly controversial promotional event that sparked nationwide outrage. The coffee chain incurred an 18.4 billion won ($13 million) loss, a sharp contrast from 40.3 billion won profit in the same period last year. Sales also dropped by 6.1 percent, reaching 747.3 billion won.
The financial downturn was primarily linked to the absence of the Summer Frequency promotional event in June. However, the company did not explicitly mention consumer dissatisfaction or boycotts as contributing factors. The backlash against Starbucks Korea escalated after the company initiated a "Tank Day" promotion, designating May 18 as such. This date commemorates the 1980 Gwangju uprising, where pro-democracy demonstrators faced brutal military suppression.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
