Lotte Group to pour US$ 300 million into its Lotte Mart stores in China

Описание: 중국 롯데마트에 긴급자금 3억달러 추가 투입
South Korean companies operating in China have been hit the hardest by Beijing's undeclared boycott of South Korea over the deployment of a U.S. missile defense system.
One such firm is Lotte Group.
To save their stores in that country, the conglomerate has announced plans to pour in hundreds of millions of dollars.
Cha Sang-mi has more.
Korean retail giant Lotte Group says it is injecting an additional 300-million U.S. dollars into its Lotte Mart stores in China, the largest overseas market for the firm,… as it tries to revive its waning business there.
Lotte Mart said on Thursday that Lotte Shopping Holdings, a subsidiary of Lotte Group based in Hong Kong, will procure the additional funds from Chinese financial institutions.

This is the second time Lotte Group has poured extra funds into its Chinese stores,… after a 320-million dollar boost in March this year.
China's economic retaliation against deployment of the THAAD missile defense system on South Korean soil has led to 87 out of Lotte's 99 mainland stores being shut down by Chinese authorities over alleged fire-safety violations.
Chinese consumers have also jumped on the bandwagon, boycotting Lotte's products, resulting in an 80 percent drop in sales for the remaining 12 stores.

This has resulted in record losses of around 445-million U.S. dollars in the first half of the year,... and were the retaliatory situation to continue till the end of the year, the losses could reach 900-million dollars.

Lotte Group's biggest worry is that they still need to pay their rental costs and retain at least 70 percent of their local employees' wages despite the suspension of business according to local laws.
Cha Sang-mi, Arirang News.

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