Chinese authorities on Monday pulled down the shutters of more than a dozen Lotte Mart stores across the country for alleged fire safety violations. The action is seen as the latest retaliatory measure by China against the embattled South Korean Conglomerate in the ongoing THAAD fiasco.   

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The Lotte Mart, which is a part of the Lotte Group's retail division, is a popular hypermarket retail store that has presence across several Chinese cities. As of January 2017, there were nearly 115 Lotte Mart retail stores in China.

A Lotte spokesman said that 23 Lotte Mart stores have been affected by the temporary closure order, including stores located as far as Dandong near the China-North Korea border, in what appears to be a wide clamp-down on the South Korean Conglomerate in its biggest overseas market.    

Three sources from the group have confirmed that the departmental stores have been closed down due to fire safety-related issues, but refused to reveal any other information due to the sensitivity of the issue.

Meanwhile, the Chinese business community also joined the anti-Lotte bandwagon last week as several e-commerce players and some brick-and-mortar retailers announced a mass boycott of Lotte's products, ranging from cosmetics to candies.

"We have completely scrubbed the name of Lotte from our website," Chen Ou, founder of China's biggest cosmetics group-purchasing platform Jumei Youpin announced on Sina Weibo last week. "We'd rather die than carry its goods in future."  

Lotte Group Caught in THAAD Tension

The Lotte Group has been facing ire from Chinese authorities since reports emerged that it is negotiating a deal to lease one of its real estate property to the South Korean government for deployment of the THAAD missile.

The all-important deal was eventually sealed last week, paving the way for retaliation by the Chinese government against the South Korean giant. Soon after announcing the deal, the group said that it is bracing for fresh sanctions against its business operations in China.

The Lotte Group signed the pact with the South Korean government, ignoring a warning from Chinese state-owned media that its operation in China will come under strain if it allows its land to be used tp deploy the THAAD missile.  

The Chinese government vehemently opposed the deployment of THAAD missile as it fears that regional security will be heavily comprised. However, the adamant Seoul has shrugged off Beijing's concerns, claiming that the deployment of the anti-US missile system is necessary to defend itself against North Korea.   

TagsLotte Group, china, THAAD missile system, China and South Korea