South Korean conglomerate Lotte Group’s multi-billion-dollar China theme park project has been suspended by China, as tensions surface again over a contentious missile defence system.
Work was stopped at the mega resort development in Shenyang after China regulators cited alleged safety issues.
However the decision is likely due to China’s strong opposition to Seoul’s proposed installation of the Terminal High Altitude Area Defense (THAAD) system, according to most political analysts and the media.
The controversial missile defence system is to protect against any arrack from North Korea but China says it also compromises its own military defences.
The Lotte project includes a theme park, shopping malls and a hotel.
The company, unsurprisingly, says there is no political motive behind the decision.
"Many people talk about potential link with the THAAD deployment over the construction suspension, but we don’t know about such things," a Lotte Group spokeswoman told the AFP.
Lotte Group has numerous commercial interests in tourism and real estate projects in China.
China has already taken some economic retaliation against South Korea with tourism at the forefront.
It squeezed outbound tourism to South Korea by blocking additional South Korean charter flights over the busy Spring Festival holiday period.
Authorities also cancelled proposed visits to China by several well known South Korean celebrities.
