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's parent company, SCK Company, reported an operating loss for the second quarter of 2023, reversing a profit from the previous year. The Korean coffee chain experienced a loss of 18.4 billion won ($13 million) during the period, down from 40.3 billion won in operating profit a year prior. Net sales for the quarter declined by 6.1% to 747.3 billion won.
The financial setback was attributed to the absence of the Summer Frequency promotional event in June, however, the company did not explicitly mention worsening consumer sentiment or boycott attempts as contributing factors. The controversy unfolded after Starbucks Korea introduced a promotional campaign for its tank-style tumblers, marking May 18 as "Tank Day." This date commemorates the 1980 Gwangju uprising, where pro-democracy demonstrators faced brutal suppression by military forces.
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.
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