Starbucks Korea Posts First Operating Loss in 27 Years Amid Controversy

Starbucks Korea has reported its first-ever quarterly operating loss since opening its first store in 1999, posting an 18.4 billion won deficit for the second quarter of 2026. The company's revenue also fell 6.1% to 747.3 billion won compared to the same period last year.

This financial downturn follows a significant controversy over its "5.18 Tank Day" marketing campaign. The backlash led to customer boycotts, including mass unsubscriptions from Starbucks cards and refunds of gift certificates, causing the brand to lose its top position in the coffee category on KakaoTalk's gift-giving service after seven years.

Adding to the challenges, Starbucks Korea canceled its crucial summer e-frequency promotion, originally scheduled to begin in June, citing internal restructuring. The company stated its commitment to "focusing on business stabilization to recover brand trust and improve profitability."

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We will focus on business stabilization to recover brand trust and improve profitability.