(Adds quote from Lotte official, background)
SEOUL, March 24 (Reuters) - 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 standoff.
“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)