South Korean companies face the brunt of China’s fury as the South Korean government deploys U.S. THAAD missiles to protect itself against a nuclear armed North Korea. Here’s how Beijing is protecting its North Korean ally.
On Monday, South Korean automaker Hyundai Motor disclosed it would be replacing the head of its China operations.
The development comes in the wake of its Chinese operations facing a supply disruption as a fallout from a diplomatic row between the two nations.
On Friday, Tao Hung Than, who is of Chinese descent, became the CEO of Beijing Hyundai Motor, replacing Chang Won-shin, said Hyundai’s spokesperson, without elaborating on the reason for the change.
Chang was the CEO of Beijing Hyundai Motor for less than a year.
Hyundai was forced to halt production for nearly a week at its joint venture motor plant with China’s BAIC Motor Corp Ltd following a fuel-tank components supplier refusing to supply parts due to non-payment.
In a development that reveals China’s hidden hand which supports North Korea, South Korean companies have been facing a backlash from China over their government’s decision to deploy U.S. THAAD missile defense system to counter threats from China’s nuclear-armed ally – North Korea.
According to China if South Korea were to deploy THAAD missiles in to defend itself against a North Korean missile threat, such a deployment poses a threat to its national security.
Hyundai Motor’s sales from its Chinese factories plummeted 64% in April-June alone.
The management changes were first reported by South Korean media over the weekend.