Lotte Duty Free executives take wage cut over Thaad

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Lotte Duty Free executives take wage cut over Thaad

More than 40 senior executives at Lotte Duty Free decided to return 10 percent of their wages on Wednesday in anticipation of revenue loss this year from a Chinese consumer boycott against the conglomerate over its involvement in the installation of a controversial missile shield in Korea.

During a management meeting, executives discussed strategies for counteracting an ongoing travel ban imposed by the Chinese government against group tours to Korea.

The ban, which was enacted in March, is believed to be retaliation against Korea’s decision to host a missile shield known as Thaad, which China believes threatens its security.

Suggestions included diversifying their base to Chinese tourists traveling individually and visitors from other countries. Executives also brought up cost reduction at seven Lotte Duty Free locations outside Korea.

The salary cut is said to stem from Lotte’s judgment that the travel ban’s impact on duty-free sales isn’t likely to subside in the near future.

Three months since the Chinese government issued orders for local tour agencies to stop offering services to Korea, the diplomatic row over Thaad still hasn’t been resolved.

By Song Kyoung-son

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