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China To Increase Retaliatory Measures Against Korea Over THAAD

By March 7, 2017 at 7:51 am
South Koreans may end up paying for the THAAD (Photo : Chung Sung-Jun/Getty Images)

China is said to be continuing its retaliatory measures against Korea to show its discontent over the deployment of Terminal High Altitude Area Defense or simply known as the THAAD. Officials of the said country just announced this last Monday.

With this, Beijing has suspended 23 Lotte Marts in China or approximately a quarter of the company's stores in the said nation. The government of China was angered after the Lotte Group offered its land as a site for the anti-missile battery.

Aside from the suspension of the stores' operation, Beijing also delisted Korea's Trade Minister Joo Hyung-hwan from its list of attendees for the Boao Forum. This forum which is sometimes called the Asian World Economic Forum gathers businessmen and politicians from all over Asia to share ideas and collaborate as per Korea Times.

Because of his, Korea has been warned to prepare for more economic disruptions from China. Even if the Seoul is set to file a complaint with the World Trade Center, still the country needs to prepare for the measures being done by China.

The latest actions of the Chinese officials against this Lotte could also affect the other Korean consumer brands like Nongshim and Orion Confectionery. It can be recalled that China contributes to 13 percent of Nongshim's sales and 50 percent of Orion's sales turnover.

Some of the Korean analysts suggested that investors and businessmen need to cut their holding in shares like tourism, cosmetics, media entertainment, confectionery, and airlines which are exposed to this THAAD clash.

As shared by Lee Kyoung-min of Daishin Securities, Chinese funds started to pull out from the KOSPI in the second quarter of last year. Hence, the Chinese capital is slowly exiting the Korea's stock market.

However, there is a forecast that China will likely to include Korean high-tech items like chips and displays even if it will not provide subsidies for its makers that import batteries of LG and Samsung. And that as long as China is still dismayed over THAAD, the retaliation measures will still exist until the next years.

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