SCK Company, the operator of Starbucks Korea, reported an operating loss of 18.4 billion won ($13.4 million) for the second quarter. This result marks a sharp reversal from the 40.3 billion won profit recorded one year earlier.
The coffee chain experienced its first quarterly loss since entering the South Korean market 27 years ago. Net sales declined 6.1% to 747.3 billion won during the period.
A severe consumer boycott followed the launch of a marketing campaign titled Tank Day in May. The promotion coincided with the anniversary of the 1980 Gwangju Uprising, a pro-democracy movement suppressed by military forces.
Public condemnation of the historically insensitive campaign prompted the company to cancel the promotion. Starbucks Korea dismissed its CEO and issued multiple public apologies following the incident.