![A Starbucks store in Seoul. [Herald DB]](https://wimg.heraldcorp.com/news/cms/2026/08/14/ams.V01.photo.HDN.P.20260622.P12026062216270146519277988_P1.jpg)
Starbucks Korea has recorded its first quarterly operating loss in the 27 years since it entered the Korean market in 1999, a result attributed to the fallout from the "Tank Day" marketing controversy that erupted in May and the subsequent cancellation of its flagship summer promotion. E-mart, which counts Starbucks Korea among its subsidiaries, also swung to an operating loss of 43 billion won ($30.4 million) on a consolidated basis.
SCK Company, the operator of Starbucks Korea, said second-quarter sales fell 6.1 percent year-on-year to 747.3 billion won, according to industry data released Sunday. Operating profit, which stood at 40.3 billion won in the second quarter of last year, swung to a loss of 18.4 billion won — a year-on-year swing of 58.7 billion won. The result also marked a 47.7 billion won deterioration from the 29.3 billion won operating profit posted in the first quarter. It is the first time Starbucks Korea has reported a quarterly operating loss since opening its first store at Ewha Womans University in 1999.
Profitability also weakened on a first-half basis. Revenue for the first six months of the year edged up 0.5 percent from a year earlier to 1.57 trillion won, but operating profit was limited to 10.9 billion won — an 85.5 percent drop from the 75.4 billion won recorded in the same period last year. The company remained in the black through the first quarter, but the second-quarter loss proved decisive.
The two main factors behind the earnings deterioration are the "Tank Day" marketing controversy that surfaced in May and the cancellation of the summer e-Frequency event, one of the company's signature annual promotions. Starbucks Korea had originally planned to run the "2026 Summer e-Frequency" from June 2 through July 26, but scrapped it entirely. The decision was widely seen as a signal that the company was prioritizing the restoration of customer trust over a near-term sales recovery.
The e-Frequency event is one of Starbucks Korea's most recognized promotions, held once each summer and winter. Customers who purchase a set number of handcrafted beverages — including designated mission drinks — receive gifts such as planners and calendars upon completing the challenge. Limited-edition items offered on a first-come, first-served basis have sold out every year, and the promotion has become so popular that customers trade their frequency stamps on secondhand platforms.
E-mart also posted an operating loss, hurt by weak results at SCK Company and other key subsidiaries. The retailer's consolidated second-quarter sales fell 1.8 percent year-on-year to 6.92 trillion won, and it swung to an operating loss of 43 billion won. On a standalone basis, however, excluding subsidiaries, second-quarter sales rose 3.5 percent to 4.44 trillion won and operating profit surged 64 percent to 25.6 billion won — a sign that the core retail business held up well even as subsidiary losses weighed on the group.
Among the subsidiaries, SSG.com posted sales of 310.5 billion won, down 11.4 percent, and an operating loss of 29.5 billion won, though its loss narrowed by 1.5 billion won from a year earlier. Convenience store chain E-mart24 recorded sales of 532.5 billion won, up 0.1 percent, with an operating loss of 2.3 billion won — a 2.1 billion won improvement from the same period last year.
korean@heraldcorp.com
