South Korea’s Lotte Group says at least of its 23 stores have been closed across China since it agreed to provide land for the THAAD system.
Lotte Group agreed last week to hand over a golf course to the South Korean government to house the THAAD system. Since then, at least 23 Lotte Mart stores across China have been shut down by authorities, according to the company.
Chinese officials say the stores have been closed because they fail to comply with fire safety regulations. But the crackdown comes just days after China’s state news agency Xinhua warned that the decision to make land available for THAAD “could turn into a nightmare for Lotte. ”
Top Lotte executives met Sunday to discuss the difficulties the group’s businesses are facing in China. They agreed to ask the South Korean government for help, Lotte said in a statement.
China is South Korea’s biggest trading partner, and accounts for about a quarter of its exports. Companies such as Samsung ( SSNLF ) and Hyundai ( HYMTF ) do a lot of business there.
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Lotte’s businesses span a wide range of industries, including food, hotels, chemicals and real estate. It employs about 20,000 people in China, a market that accounts for just under 30% of its sales outside South Korea.
“Lotte stands to lose Chinese customers and the Chinese market.
