South Korea's Lotte considers sale of supermarkets in China - source (updated)
11/09/2017 01:40
(Adds background, share price)
SEOUL, Sept 11 (Reuters) - South Korea's Lotte Shopping
023530.KS is considering selling its supermarkets in China and
other options should political tensions between Seoul and
Beijing continue next year, an official at the retailer told
Reuters on Monday.
"It is natural that we should have various alternatives, but
no discussions or decisions have been made regarding detailed
plans," the official said on condition of anonymity because of
the sensitivity of the issue.
He did not elaborate on what other options were under
consideration.
South Korean newspaper Chosun Ilbo reported on Saturday that
Lotte plans to gradually sell as many as 50 of its 99 Lotte Mart
stores in China and slash its Chinese workforce, citing a
high-ranking official at its parent group, South Korea's No. 5
conglomerate.
Seventy-four of Lotte's 99 Mart stores in China were closed
by fire authorities over safety violations such as boxes
blocking exit doors. Another 13 stores were shut down because of
difficult business conditions.
China has pressured South Korean businesses via boycotts and
bans since Seoul decided last year to deploy a U.S.-made missile
defence system as a deterrent to nuclear-armed North Korea.
Beijing says the system's radar can penetrate far into its
territory.
Lotte has been among the hardest hit companies after it
handed over land in southern South Korea so the Terminal High
Altitude Area Defense (THAAD) system could be installed there.
urn:newsml:reuters.com:*:nL3N1JC3BA
Seoul deployed the four more THAAD launchers on Thursday,
several days after Pyongyang conducted its sixth nuclear test.
Lotte Shopping shares were up 0.7 percent in the wider
market .KS11 that was up 0.8 percent as of 0019 GMT.
(Reporting by Hyunjoo Jin; Editing by Stephen Coates)
((hyunjoo.jin@thomsonreuters.com; 82-2-3704-5685; Reuters
Messaging: hyunjoo.jin.thomsonreuters.com@reuters.net))
Keywords: LOTTE SHOPPING CHINA/