Lotte Group China faces huge losses as its outlets remain closed after nearly two months.

The Korean retail group’s management say the closures are an apparent retaliation by Beijing officials against the THAAD US missile defence system set up in South Korea.

Chinese authorities ordered Lotte to close its stores following inspections in late February and early March after the company agreed give the Korean Defence Ministry a site for the THAAD missile system in a land-swap deal.

Lotte says nearly 90 per cent of its 99 Lotte Mart hypermarkets in China have stopped working, with 74 stores forcefully shut down in the name of fire inspections and 13 closed temporarily because of anti-Korea protests. Lotte has about 120 retail outlets in China, including five department stores.

If the stores stay closed for three months, Lotte will lose about 300 billion won (US$264 million) in revenue, say group officials. When lost sales for duty-free, foodand other businesses are included, the combined losses are predicted to reach 500 billion won.

South Korea decided last year to host a THAAD battery to boost defence against North Korea, but China argues that the system is also aimed at Beijing.

Other economic retaliatory measures by China include restrictions on South Korean imports and Chinese tours to the country.