SCK Company reports an 18.4 billion won operating loss after a marketing controversy triggers public outrage and boycotts.
Starbucks Korea operator SCK Company posted an 18.4 billion won ($13.4 million) operating loss in the second quarter, reversing a 40.3 billion won profit in the same period last year. The decline follows a marketing campaign dubbed “Tank Day,” which sparked widespread criticism for its insensitive references to the 1980 Gwangju Uprising.
The company recorded 747.3 billion won in sales for the April-June period, down from prior profitability. Emart, the majority stakeholder, cited the controversy as a factor but stopped short of directly linking the loss to boycott calls. Starbucks Korea has since apologized and replaced its CEO.
Civic groups continued protests at Starbucks locations even after the apology, according to the company. Efforts to restore consumer trust are now a priority for the unit.