Home > Markets > Lotte Approves Land Swap With Government For Missile Defense System
Markets

Lotte Approves Land Swap With Government For Missile Defense System

By February 28, 2017 at 7:37 am
Chinese media calls for a boycott of Lotte and other Korean products. (Photo : Chung Sung-Jun/Getty Images)

South Korean company Lotte has agreed to a land swap with the government on Monday. This is expected to be used by authorities to push through with a controversial U.S. missile defense system.

Last year, the government decided to deploy the U.S. Terminal High Altitude Area Defence (THAAD) system on a segment of Lotte's golf course in the Seongju region. This was done as a response to the North Korean missile threat, Reuters reported.

Lotte International Co Ltd board agreed to the deal with the government. The Defense ministry and the company will be signing an agreement as early as Feb. 28, Tuesday.

With this, it is believed that the United States will be beginning the system's operations by the end of this year. Last week, a South Korean military official said that the deployment could be finished by August.

However, China has expressed its objection to the deployment of the THAAD in South Korea. On Monday, Chinese Foreign Ministry spokesman Geng Shuang reiterated the country's stand on the issue.

He said that China will not be helping maintain peace and stability in the Korean peninsula and urged South Korea and the U.S. not to push through. "All the consequences of that are the responsibility of South Korea and the United States," he said.

According to Quartz, China has already made life difficult for South Korea. One of the industries that took a hit early was entertainment.

China, which has been a major market for K-pop, has turned down recent applications of Korean stars to perform in the country. It has also banned the screening of Korean movies unofficially.

Moreover, South Korea's tourism, car, and cosmetic sectors have felt the negative impact as well. Lotte has also been warned about allowing one of its golf courses to be turned into a THAAD site.

Economic consequences were said to be at stake if the company pushed through with the deal. Lotte has more than 150 retail stores in China.

Like Us on Facebook