Acquisition costs and product recall hamper Starbucks’ profitability in South Korea

South Korean retail giant Emart says costs associated with acquiring a majority stake in Starbucks' Korean business last year, the strong dollar and a major merchandise recall contributed to group profits more than halving in 2022

20 February 2023

1 min read

E-Mart acquired a majority stake in Starbucks’ South Korean business in January 2022 | Photo credit: Starbucks

South Korean retail giant Emart says that costs associated with acquiring a majority stake in Starbucks’ Korean business last year, the strong dollar and a major merchandise recall contributed to group profits more than halving in 2022

E-Mart has reported record sales in 2022, but said the lower-than expected profitability of Starbucks Korea led to a fall in group profits.