A file picture shows a Lotte Mart outlet in China. [Yonhap News Photo]
South Korean policymakers desk warmed this week after Lotte, the country's fifth-largest conglomerate, called for government help to ride out a Chinese onslaught caused by the planned installment of an advanced US missile shield that soured ties between Asia's two major economies.
Anxiety is growing in South Korea's business circle over a wave of retaliatory steps taken by China in protest at a Terminal High Altitude Area Defense (THAAD) system. Beijing claimed the system would "seriously" hurt strategic interests of China and other countries as well as the security balance in Northeast Asia.
Retaliation became conspicuous after Lotte pushed ahead with a land swap deal to let US troops install a THAAD battery in its golf course southeast of Seoul.
Lotte executives held an emergency meeting Sunday and called for active government cooperation to minimize damage as its business in China became the target of a concerted anti-Lotte campaign.
At a policy meeting hosted by Finance Minister Yoo Il-ho on Monday, economic experts urged Seoul to take firm action and come up with long-term measures aimed at reducing its dependency on China in trade.
China is South Korea's biggest trade partner. South Korean exports to the world's second-largest economy stood at 124.5 billion US dollars last year, accounting for 25 percent of total shipments.
South Korean Foreign Minister Yun Byung-se has vowed to take action if needed, after seeing whether China's retaliatory action runs against international norms.
Along with invisible trade retaliation, Chinese state regulators have issued oral guidelines to ban the distribution of K-pop contents, dealing a blow to the dissemination of Hallyu (Korean culture wave) in China through official channels.
Chinese media censorship and trade retaliation were visible from November when South Korea was rocked by political turbulence over a corruption scandal engulfing President Park Geun-hye. The control tower of diplomacy and culture has been left helpless.
Furthermore, Seoul has no effective tools or leverage to fend off the Chinese campaign. On Thursday, the South's foreign ministry urged China to exercise restraint but said Seoul would not change its policy.
Lim Chang-won = cwlim34@ajunews.com
reporter
Park Sae-jin
swatchsjp@ajunews.com
