Lotte exits China

Political relations between US and North Korea have claimed collateral damage, in particular a retail victim: South Korea's Lotte business in China. The US missile-defence system (THAAD) was been installed in South Korea earlier this year on land belonging to the Lotte conglomerate (who had little choice in the matter). The Chinese government objected and tried to pressure South Korea through a boycott of goods. Chinese officials then closed 99 Lotte Mart stores on various pretexts. Lotte itself then shut another 13 stores when customers stayed away. It will now leave China. Car sales in South Korea have also been affected, and Amore Pacific, a cosmetics firm, reported a 58% dip in second quarter profits. Group tours from China to South Korea have been banned since March.
