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China's official news agency, Xinhua, in a fiercely worded commentary Sunday, said the Lotte board would "hurt the Chinese people" and the "consequences could be severe" if it goes ahead and finalizes a land-swap deal.
"Lotte stands to lose Chinese customers and the Chinese market. That would be a very large slice out of their business pie," said the commentary, which did not carry a byline.
Lotte, which has also faced a tax investigation in China, is not alone in facing Beijing's wrath. South Korea analysts argue that Beijing is using economic retaliation against South Korea to send the country a political message.
"Trade is being used as a punishment to any country that has territorial and other issues with China," Ingyu Oh, a professor of sociology at Korea University, told CNN.
"China's message to South Korea is not to align with the US military to a degree that can threaten the security of China," added Oh.
Performances canceled
In January, two South Korean classical artists, soprano Sumi Jo and pianist Kwun-woo Paik, were denied performance visas. No reason was given.
Sumi Jo said on her Twitter account that her China tour had suddenly been canceled after two years of preparations. It had been China that had initially invited her to perform.
Official response
A South Korea government spokesman told CNN that it was paying attention to "the list of measures recently taking place in China."
"[We] plan to manage the relationship of the two countries while keeping the principles regarding securities issues and limiting the effect it has on South Korea-China relations," the spokesman told CNN.
South Korea's Foreign Ministry said this month that the cosmetics had been banned because the requisite registration documents hadn't been submitted.
Beijing denies placing economic sanctions on South Korea, while continuing to assert its opposition to THAAD.
Chinese Foreign Ministry spokesman Lu Kang, told CNN February 7 that he'd never heard of China "imposing any restriction on the Republic of Korea."
But Christopher Green, a researcher at Leiden University in the Netherlands, says actions speak louder than words. He says there is "zero likelihood that the Chinese actions are not politically motivated."
"The Chinese actions are part of the endless struggle for influence and control in East Asia. From the Korean side, the issue is experienced as localized pressure on its economy in response to the THAAD decision," said Green.
Trade relations at risk?
THAAD's planned deployment puts such trade and cultural relations at risk -- Oh says China's hallyu market is worth just under $1 billion.
Exporters of Korean dramas, pop music and shows, said Oh, were now trying to "withdraw from China and recommit themselves to old and new markets."
However, the popularity of South Korean products on the ground in China doesn't appear to be diminishing -- at least for now.
"I know THAAD, but I wouldn't boycott Korean cosmetics for it. I bought the products in China so my consumption should help domestic economy in China," Freya Fan, who buys Korean "Innisfree" products, told CNN in Beijing.