Concerns on More Retaliations
Four launchers have been added to the U.S. THAAD base in Seongju County, North Gyeongsang Province. The South Korean government announced on September 7 that it gave China prior notice regarding this matter.
The Global Times, a state-run news outlet of China, criticized South Korea, claiming that THAAD does not differ at all from the nuclear weapons in North Korea in that it jeopardizes the strategic balance in Asia. The Chinese Foreign Affairs Ministry summoned South Korean Ambassador to China Kim Jang-soo again in just two months.
South Korean entrepreneurs are getting frustrated with what is going on. “Economic relations and cooperation in the private sector should not be affected by external factors such as the conflict over THAAD deployment in South Korea,” the Korea International Trade Association commented.
Lotte Mart’s losses attributable to the suspension of business in China are estimated to reach one trillion won (US$900 million) this year alone. South Korean automakers, builders and so on are likely to suffer significant losses, too.
These days, the Hyundai Motor Group’s sales are plummeting in the Chinese market and local business partners are increasingly shunning the group. At present, Hyundai Motor Company has three manufacturing plants in Beijing, one in Cangzhou and one in Chongqing. The operations of those in Beijing and Cangzhou are currently abnormal. The rapid decline in sales has led to arrears and disputes as well. The Global Times reported on September 6 that BAIC Group is looking to sever its relations with Hyundai and Beijing Hyundai.