Lotte Group continues to be the target of government inspections in China, as tensions rise between the country and Korea over the deployment of a US anti-missile system here.

On Wednesday, Lotte Shanghai Food Corp.’s chocolate factory was directed to shut down for one month after a building safety inspection Monday. 

The corporation is a 50-50 joint venture between Lotte Confectionery and US-based candy maker Hershey’s. 

“In cooperation with the government, as of March 8, the LSFC factory will suspend production.

This action is being taken in connection with a routine inspection and we are working closely with the government on these matters,” Hershey’s said.
Similar inspections have led to the closing of 55 of the 99 Lotte Mart outlets currently operating in China. According to Lotte, the losses from these temporary closures could reach up to 50 billion won ($42.3 million) over one month.

The impact of the installment of the Terminal High Altitude Area Defense system is spreading to Chinese consumers as well, with companies in the domestic tourism industry feeling the heat. 

According to reports, reservations at hotels in Seoul as well as reservations for group tours to popular tourist attractions such as Lotte World have fallen by up to 20 percent compared to last year.

By Won Ho-jung (hjwon@heraldcorp.com)