April 26, 2024

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[THE INVESTOR] The number of Lotte’s hypermarkets that have been barred from operations in China has increased to 23 as of March 6, according to Yonhap News Agency. 

On the previous day, the Chinese authorities slapped a one-month ban on four stores citing violations of fire safety regulations. 

This follows a series of retaliatory steps by China in protest against South Korea’s plans to deploy THAAD on a site previously owned by Lotte Group.

Lotte currently operates 99 Lotte Marts, as well as five department stores and 16 supermarkets, in China. 

The group convened an emergency meeting of executives on March 5 and decided to ask the South Korean government to appeal on its behalf saying that it is employing close to 20,000 local staff contributing to the Chinese economy. It also noted that the provision of the site that it had handed over to the military meets the government’s request for the sake of national security. 

“China welcomes foreign companies to make investments and do business and protects their lawful rights and interests according to law,” said Chinese Foreign Ministry spokesperson Geng Shuang on March 2 in a regular press conference. 

However, he added that “their operations in China must comply with local laws and regulations … at the end of the day the Chinese market and consumers will determine whether a foreign company is successful in China.” 

By Hwang You-mee (glamazon@heraldcorp.com)