The THAAD impasse continues to take a toll on South Korean companies operating in China. The latest to bear the brunt is Hyundai Motors and its sister company Kia Motors, which has been forced to cut down on its production target in the Chinese markets due to a slump in sales.

South Korea's Yonhap News Agency claims that the combined sales of Hyundai and Kia Motors in the Chinese market halved by nearly 52 percent in March from a year earlier. The massive drop in sales will not just affect the two auto companies, but also the South Korean local suppliers.          

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Hyundai and Kia are yet to officially comment on this report. But the fact that Chinese authorities have been openly targeting Korean companies after the THAAD fallout gives a lot of credence to this report.  

Last month, a South Korean-based news website reported that Hyundai decided to temporarily shut down a manufacturing plant at Guangzhou town in Hebei Province for maintenance purposes. But analysts claim that the auto giant was forced to make the tough decision due to flattening sales in the Chinese market.

Meanwhile, the Lotte Group, which is facing the most ire from Chinese authorities, said on Monday that it would continue to invest in the Chinese market despite the ongoing actions against the group. In the previous month, the South Korean conglomerate faced a tough challenge after dozens of Lotte Mart retail stores were asked to close down across China.

With the operation of Korean companies relentlessly suffering in China, last month Seoul was forced to lodge an official complaint with the WTO against what it described was China's alleged unfair trade practices.

China opposes deployment of THAAD Missile   

Beijing has repeatedly cited security concerns for its vehement opposition to the U.S. missile system on the Korean Peninsula. It also claims that the installment of the THAAD anti-missile system is likely to prove counterproductive in the long run since North Korea is unlikely to give up on its controversial nuclear program.    

However, Seoul and Washington are adamant that such an extreme move is necessary to counter any possible attack from North Korea. Both countries have started preliminary preparations for the deployment of the U.S. anti-missile system on the Korean border.

TagsHyundai Motos, kia motors, china, THAAD Missile, China and South Korea