SOUTH KOREA. Lotte Duty-Free has concluded an agreement with the Export-Import Bank of Korea to provide financial support for small and medium companies (SMEs) affected by the current slump in tourism from China.
As reported, the Chinese authorities have reacted furiously to the South Korean government’s decision to deploy the US anti-missile system THAAD as a defence and deterrent against North Korean attacks. China considers the system a threat to its own security and to regional stability.
A China National Travel Administration (CNTA) ban on group travel to South Korea took effect on 15 March, a devastating blow for a country where Chinese make up nearly one in two tourists and generate around 70% of duty free spending.
Lotte Duty Free, which has felt the brunt of the backlash due to THAAD being sited on Lotte Group land, said today that the bank deal would offer a “co-prosperity” financing programme to assist smaller companies hurt by the controversy.
The Export-Import Bank of Korea provides financial support for export and import transactions, and overseas investments.
Announcing the support programme, Lotte Duty Free CEO Sun-wook Jang said that from last October SME suppliers of duty free products qualified as exporters, meaning they are eligible for financial assistance from the bank to assist their liquidity. Lotte Duty Free will also provide a variety of support services to the companies.
Lotte Duty Free said, “We are fortunate to offer financial support for SMEs in cooperation with Export-Import Bank of Korea, as the Korean duty free industry is facing serious difficulties due to the THAAD situation. We will continue to look for measures that can be helpful in overcoming this crisis and revitalising the business.”