Starbucks Korea posts 18.4 billion won second quarter loss as sales drop 6 percent
The company cited its lack of summer campaigns, not its controversial “Tank Day” marketing, as the reason behind the sharp reversal in its financial results.
SCK Company, the operator of Starbucks Korea, swung to an operating loss in the second quarter amid consumer backlash over its allegedly tone-deaf “Tank Day” marketing campaign.
SCK Company posted net sales of 747.3 billion won ($528 million) in the second quarter, down 6.1 percent from a year earlier, according to its parent company Emart’s second quarter earnings disclosure on Thursday. Emart, a Shinsegae Group affiliate, owns Starbucks Korea.
The company also posted an operating loss of 18.4 billion won, compared to an operating profit of 40.3 billion won in the second quarter of 2025. That represents a 58.7 billion won decline from a year earlier.
The company also went from an operating profit of 29.3 billion won in the first quarter of 2026 to an 18.4 billion won loss in the second quarter, a 47.7 billion won swing.
SCK Company’s weaker results follow consumer backlash over its “Tank Day” marketing campaign, which took place around the May 18 anniversary of the Gwangju Democratization Movement. Its advertising campaign was highly criticized for its ignorance, which was perceived as a mockery of the brutal military suppression of the protesters that left hundreds of people dead.
Members of a civic organization hold a protest against Shinsegae Group, the owner of Starbucks Korea, following the coffee franchise's ″Tank Day″ promotion, in Gwanghwamun, central Seoul on May 27. Seen in the picture is the face of Chung Yong-jin, chairman of Shinsegae Group.YONHAP
However, SCK Company did not identify the Tank Day controversy or the boycott that followed as a direct cause of the earnings decline in its second quarter investor relations materials. The company instead cited its decision not to hold its annual Summer e-Frequency promotion in June as a factor behind the weaker results. The seasonal marketing campaign, where users can earn points for beverage purchases to purchase limited merch, typically helps attract customers and boost sales during the summer.
The company's footprint, meanwhile, nonetheless continued to grow. SCK Company had 2,185 stores at the end of the second quarter, up 49 from a year earlier.
SCK Company’s net sales also rose 0.5 percent on year to 1.57 trillion won in the first half of 2026. Operating profit, however, plunged 85.5 percent to 10.9 billion won in the same period. SCK's operating profit in the first half was 75.4 billion won last year.
BY JEONG HYE-JEONG [lee.jiwon10@joongang.co.kr]
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
