Lotte Group Could Face Chinese Backlash Due to THAAD Controversy

For anyone that owns Lotte Group stock, now may be the time to start dumping it:

Lotte Group has been dragged into the controversy over where Korea deploys the controversial U.S. anti-missile battery, after its golf course in Seongju County, North Gyeongsang Province, emerged as the most probable alternative site.

Korea’s fifth-largest family-controlled conglomerate fears its duty free stores, hotels and other businesses that cater to Chinese visitors will be adversely affected if the government decides to install a Terminal High Altitude Area Defense (THAAD) battery at the Lotte Skyhill Country Club (CC), north of downtown Seongju. Lotte officials are also worried that its businesses in China will suffer.

Lotte is unlikely to get fair value for the golf course because the government offers compensation based on the property’s appraisal value, which is much lower than the market price.

However, the conglomerate is not in a position to publicly oppose the possible THAAD deployment to one of its most profitable golf clubs because its Chairman, Shin Dong-bin, his family members and heads of Lotte units are under investigation on allegations of breach of trust, embezzlement and other irregularities. [Korea Times]

You can read more at the link, but it will be interesting to see the Chinese reaction if Lotte is forced to sell the golf resort.