‘Tank Day’ fiasco puts Starbucks Korea in the red for first time in 27 years

Starbucks Korea experienced its first quarterly loss in 27 years, resulting in an operating loss during the second quarter. This downturn was attributed to a consumer boycott triggered by a marketing campaign perceived as mocking victims of the 1980 Gwangju pro-democracy movement. The campaign, featuring promotional slogans like "May 18" and "Tank Day," referenced the tanks used by government forces during the incident.

Additionally, Starbucks canceled its popular "Summer e-Frequency" promotion. Emart, Starbucks Korea's parent company, reported a net sales decline of 6.1% year-over-year to 747.3 billion won for the second quarter, marking a significant 58.7 billion won decrease from the previous year. This loss was further exacerbated by the cancellation of the Summer e-Frequency promotion, which contributed to SCK Company's operating loss of 18.4 billion won for the quarter, a sharp contrast from the previous quarter's profit.

Despite opening 49 new Starbucks locations, SCK Company's cumulative profit for the first half of the year fell by 85.5% compared to the same period last year. Emart's overall performance remained robust, with a 3.5% increase in standalone gross sales to 4.44 trillion won and a 64% rise in operating profit to 25.6 billion won. However, the combined result for the second quarter saw a decline of 1.8% year-over-year, resulting in a consolidated operating loss of 43 billion won.