The Korea Times reported on Friday that Chinese officials had suspended production at LG Household & Health Care’s Hangzhou cosmetic plant for one month, attributing the halt in operation to the escalating row over South Korea’s decision to deploy a US anti-missile system.
However, the K-beauty giant has since denied reports, stating “It is true that our cosmetics plant in Hangzhou underwent a state inspection for the facility’s fire protection system, but it has not received any official document from the Chinese authorities ordering it to suspend production. In particular, the Beijing plant, which produces daily necessities, has not been subject to any inspection.”
Fellow Korean manufacturer and retailer Lotte is said to have suffered fallout from the THAAD row too, with its production joint venture, Lotte Shanghai Foods, ordered to close for a month due to its ‘inadequate’ fire protection system. The Korea Times added that some 55 of Lotte’s 99 Chinese stores had been forced to close for various reasons.