THAAD ten­sions af­fect more South Korean com­pa­nies in China: report

Global Times US Edition - - BIZOVE -

With E-mart’s loom­ing exit from the Chi­nese main­land mar­ket, more South Korean com­pa­nies in China are see­ing side-ef­fects caused by the de­ploy­ment of the Ter­mi­nal High Al­ti­tude Area De­fense ( THAAD) sys­tem, news site huan­qiu.com re­ported on Fri­day.

Af­ter 20 years’ op­er­a­tion in China, shrink­ing from 26 branches into six chain shops, South Korea’s E-mart has an- nounced an exit from Chi­nese mar­ket. The com­pany has an­nounced plans for its em­ploy­ees, do­mes­tic news site thep­a­per.cn re­ported on Satur­day.

Thai­land’s Charoen Pokp­hand Group (CP Group), the largest pri­vate com­pany in Thai­land, will ac­quire five of E-mart’s chain shops in Shang­hai. CP Group in­tends to re­tain all the em­ploy­ees and put all branches back into busi­ness “as soon as pos­si­ble,” the report said.

E-mart is not alone, Lotte Group, South Korea’s biggest op­er­a­tor of depart­ment stores and duty-free shops, is also hav­ing a tough time in China. There were 112 Lotte Mart shops, 87 of which have closed while others are wind­ing down their busi­ness.

Ac­cord­ing to Lotte Mart’s es­ti­mate, its op­er­a­tions in China prob­a­bly lost at least 500 bil­lion Korean won ($440 mil­lion) in the past six months be­cause of THAAD, the report noted.

Lotte Group is re­ported to be keen to sell the Lotte Mart busi­ness in China, but its sta­tus is mak­ing it dif­fi­cult to reach a de­cent deal. The quo­ta­tion has been low­ered at least 30 per­cent, ac­cord­ing to a re based hai­wainet.

South Korea’ agency es­ti­mate if the THAAD is rect losses could 18.1 tril­lion Kore bil­lion) and 402,

South Korean um-sized en­terp it is in­evitable t give up their bu ac­cord­ing to hua & Lock, a Sou maker of plast wares, has sold 6 shares to the AE funds in Hong K

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