(Adds quote from Lotte official, background)
SEOUL, March 24 South Korea's Lotte Shopping Co
Ltd said on Friday it will inject $192 million into
a Hong Kong subsidiary in May via a rights issue to infuse funds
into its China operations.
The retailer said in a regulatory filing that the injection
is to raise funds for its hypermarket and supermarket business
in China "for smooth business."
Lotte Shopping also said in a separate filing that it is
providing collateral for a separate China affiliate to be able
to borrow up to 792 million yuan ($114.98 million) from three
banks sometime in March.
This month, Chinese authorities closed dozens of retail
stores of South Korea's Lotte Group following inspections,
ramping up pressure on the conglomerate amid a diplomatic
"We are securing operational funds for Lotte Mart's China
business such as for buying products and maintaining stores, as
revenue has been reduced due to store closures," a Lotte
Shopping official said.
Out of Lotte's 99 hypermarkets in China, 67 had been closed
by Chinese authorities as of Thursday.
($1 = 6.8882 Chinese yuan renminbi)
(Reporting by Joyce Lee; Editing by Kim Coghill)