April 27, 2024

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[THE INEVESTOR] Amid escalating Chinese retaliatory actions against Lotte following the THAAD deployment in South Korea, its chocolate factory in Shanghai is on the verge of being shut down, according to industry sources on March 8.

The plant operated by Lotte Shanghai Food Corp., a joint venture between Lotte Confectionery and Hershey, was subject to fire inspections recently. 

“The operations have not been halted yet, but from the tone of the inspection it is highly probable that we may receive an official letter to suspend operations today or tomorrow,” said a Lotte official.

This would be the first time a manufacturing facility has been the object of China’s economic retaliation against the Korean retail giant that has recently decided to offer a golf course for the deployment of the US-made missile defense system. 

Many hypermarkets of the South Korean retailer have been targeted. Out of 99 Lotte Mart stores, as many as 39 have been suspended so far, citing violations of fire safety regulations. 

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