E-Mart faces market scrutiny over potential adjustments to its 2026 sales forecast following the Starbucks Korea controversy. The retail giant originally projected consolidated sales of 29.3 trillion won for 2026 in February, but the unexpected crisis involving its subsidiary SCK Company has triggered analyst downgrades. The controversy erupted when Starbucks Korea used slogans during a May 15-26 tumbler event that were perceived as disrespecting the May 18 Democratization Movement and the 1987 Park Jong-chul torture case, prompting public backlash against E-Mart. E-Mart holds a 67.5% stake in SCK Company, which operates Starbucks Korea, making the subsidiary's performance directly material to the parent company's consolidated results.
E-Mart Records 14-Year High Q1 2026 Operating Profit
E-Mart reported consolidated Q1 2026 sales of 7.1234 trillion won, a 1.3% decrease year-over-year, according to industry sources. Operating profit reached 178.3 billion won, an 11.9% increase compared to the same period last year. The operating profit figure marked E-Mart's highest first-quarter performance since 2012, representing a 14-year record for the period.
Starbucks Korea Controversy Triggers May Public Backlash
Starbucks Korea conducted a tumbler event from May 15 to May 26, during which the company used phrases including "Tank Day" and "Tak on the Desk" on May 18. These expressions drew criticism for allegedly mocking the May 18 Democratization Movement and the 1987 Park Jong-chul torture death case. Shinsegae Group Chairman Chung Yong-jin dismissed SCK Company CEO Son Jung-hyun and issued a public apology in response, but public anger did not quickly subside.
Hanwha Investment Securities Forecasts SCK Company Q2 2026 Loss
Hanwha Investment Securities projects SCK Company will record Q2 2026 sales of 653.7 billion won, an 18% decrease year-over-year, with an operating loss of 13.1 billion won. SCK Company's status as a key E-Mart subsidiary means its performance fluctuations directly impact the parent company's consolidated results. The remaining 32.5% of SCK Company shares are held by an affiliate of Singapore sovereign wealth fund GIC.
Securities Firms Lower E-Mart 2026 Sales Estimates
Yonhap Infomax compiled recent earnings forecasts from six major domestic securities firms issued within the past month, showing E-Mart's projected 2026 consolidated sales at 28.9999 trillion won. This represents a decline from 30.3778 trillion won forecasted three months ago and 29.1175 trillion won forecasted one month ago. The downward revisions reflect analyst reassessments following the Starbucks controversy.
E-Mart Conducts Employee Education Sessions in Response
E-Mart executives and Starbucks headquarters staff received education on historical awareness and social sensitivity at Shinsegae Namsan corporate training center on the 17th of last month. On the 22nd of the same month, all Starbucks stores nationwide closed early for employees to watch educational videos. These measures represent the company's efforts to address consumer concerns and rebuild public trust.
FAQ
What was E-Mart's original 2026 sales forecast?
E-Mart projected consolidated sales of 29.3 trillion won for 2026 in February, before the Starbucks Korea controversy emerged.
Why did Starbucks Korea face public backlash in May?
Starbucks Korea used phrases including "Tank Day" and "Tak on the Desk" on May 18 during a May 15-26 tumbler event, which were criticized for allegedly mocking the May 18 Democratization Movement and the 1987 Park Jong-chul torture death case.
What is the current securities firm consensus for E-Mart's 2026 sales?
Six major domestic securities firms project E-Mart will achieve 2026 consolidated sales of 28.9999 trillion won, down from earlier forecasts of 30.3778 trillion won three months ago and 29.1175 trillion won one month ago.
