S.Korea's Lotte Shopping to inject $192 million, provide collateral for China business

(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


"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)