April 27, 2024

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[THE INVESTOR] Lotte Skyhill Country Club on Feb. 27 approved the handover of the golf course in Seongju, North Gyeongsang Province, to the government for the deployment of the controversial US missile defense system.

According to the Ministry of National Defense, the Lotte Group’s golf course operator approved the action at a board of directors’ meeting.

Last year, the golf course was selected as the location of the Terminal High Altitude Area Defense system. The company had agreed to hand over the property in return for real estate of similar value in Gyeonggi Province from the government. The Defense Ministry said that the two sides plan to sign the contract as early as Feb. 28, and that details will be disclosed once the contract is signed.

Although the transaction had been agreed to, Lotte Group had delayed sealing the deal over fears that its Chinese operations will be adversely affected. Beijing has been vocally expressing disapproval since Seoul and Washington agreed to deploy the missile defense system.

Lotte Group entered the Chinese market in 1994, and at present 24 affiliates have businesses in China.

The group’s Chinese operations count about 20,000 employees, and their combined annual revenue stands at about 3 trillion won (US$2.65 billion).

By Choi He-suk (cheesuk@heraldcorp.com)