Core Viewpoint - Lotte Group's failure in the Chinese market is attributed to widespread consumer backlash against its support for the deployment of the THAAD missile defense system, leading to significant operational losses and a tarnished brand image in China [1][4][5]. Group 1: Company Background - Lotte Group was founded in 1948 by Shin Dong-bin, a Korean immigrant in Japan, and has grown into a major conglomerate with over 41 subsidiaries and 45,000 employees by 2002, boasting total assets exceeding 30 trillion KRW [3]. - The company entered the Chinese market in 1994 and rapidly expanded, opening 300 stores by 2016, becoming a well-known supermarket chain [4]. Group 2: Market Exit and Financial Impact - Following the announcement of the THAAD deployment in September 2016, Lotte faced severe backlash from Chinese consumers, resulting in a drastic decline in sales and foot traffic at its stores [4][5]. - Within three months, Lotte incurred losses of approximately 300 billion KRW, with total losses projected to exceed 500 billion KRW, and some estimates suggesting losses could reach 8 trillion KRW, equivalent to 0.5% of South Korea's GDP [5]. Group 3: Internal and External Challenges - Lotte's challenges were compounded by internal management struggles and scandals, including allegations of sexual misconduct and financial improprieties involving top executives, which further damaged the company's reputation [9][12]. - The company's inability to effectively manage internal conflicts and external crises, coupled with poor strategic decisions, led to its decline from a peak position in the market [11].