Lotte group delays deal with defense ministry on US missile shield

By Park Sae-jin Posted : January 16, 2017, 17:40 Updated : January 16, 2017, 17:40

[Yonhap Photo]



South Korea's Lotte group has balked at a property swap to transfer its golf course as the site for the deployment of an advanced US missile shield, citing technical reasons.

The deal was to be signed off this week, but the defense ministry said Monday a delay was inevitable because of "administrative" reasons involving Lotte. The two sides have already completed a joint appraisal of the value of the two sites to be exchanged.

In September last year, Lotte agreed to transfer its golf course in a remote rural area to the defense ministry for the deployment of a Terminal High Altitude Area Defense (THAAD) system, in return for military-owned land at the northeastern suburb of Seoul.

Related or not, Beijing has launched an extensive tax and sanitary investigation into Lotte Group outlets in China, which accounts for one-fourth of South Korea's total exports.

Lotte and other business groups in South Korea are concerned about China's apparent trade retaliation that followed restrictions on K-pop stars.

The THAAD system has hurt relations between Beijing and Seoul. Beijing has argued the US missile shield would "seriously" hurt strategic interests of China and the security balance in Northeast Asia.
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