Lotte's bitter harvest

Lotte Group, the biggest operator of department stores and duty-free shops in the Republic of Korea, agreed to provide land to the government for the deployment of the United States' Terminal High Altitude Area Defense anti-missile system on Monday, a move that undermines the security interests of other countries in the region, including China.

If the ROK's deployment of THAAD is stabbing China in the back, then Lotte's decision is tantamount to the company being the jackal to the tiger. It is thus natural that Chinese consumers will now be less willing to patronize the company; Lotte's duty-free stores, which depend heavily on Chinese tourists to the ROK, will surely pay a price.

China-ROK relations have advanced well in recent years, bringing enormous benefits to enterprises in both countries. Lotte has been one of the biggest beneficiaries. By the end of 2015, there were business outlets affiliated to Lotte in 24 provinces across China and Chinese shoppers accounted for 70 percent of the sales revenue of Lotte's duty-free shops.