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Biz News Korea(Eng)
China expands THAAD retaliation beyond Lotte, hits on LG Household factory
- Collected
- 2017.03.11
- Distributed
- 2017.03.13
- Source
- Go Direct
LG Household & Health Care, the No. 2 player in Korea’s cosmetic industry, said on Friday that Chinese authorities recently ordered its cosmetics plant in Hangzhou to replace floor materials with anti-flammable ones after unexpected inspections into its fire protection system.
The plant has to stop production lines to follow the order. The cost caused by production disruptions cannot be estimated immediately because the company is in talks with authorities on the exact scope of correction.
Beijing has so far been targeting corporate interests of Lotte Group, forcing the Korean retail giant to close 60 stores across China but the latest event indicates it is moving the target to other Korean companies operating there.
LG Household & Health Care runs two plants in China, with the Hangzhou factory for mostly low-priced skincare products generating annual sales of about 7 billion won ($6 million) . The other Beijing factory, which makes toothpaste and other household items, has not been subject to inspection so far.
China’s growing retaliatory actions are causing nervousness among Korean companies heavily exposed to China. State media outlets have argued China should expand a boycott campaign against not only Lotte but other large Korean companies like Samsung and Hyundai.
By Park Man-won
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]