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Shin Kong working to settle dispute with PRC partner

Shin Kong Mitsukoshi Depart-ment Store (新光三越) said yesterday it was actively negotiating with its Chinese partner to maintain normal operations at its Beijing joint venture in order to safeguard customers and suppliers' interests.

The company's remark came amid news that Steven Wu (吳昕達), general manager of Shin Kong, was detained by his Chinese partners because of a difference in opinion over the Beijing store's operations.

Shin Kong and China's top retailer, Beijing Hualian Group (北京華聯集團), established the 50/50 joint venture in the Chinese capital in April, with total investment reaching 750 million yuan (US$99 million).

In a statement issued yesterday, Shin Kong said that management had acted in a "decent manner," rejecting claims by its Chinese partner that some Taiwanese executives at the venture had used improper business practices for personal interests.

The Chinese-language China Times reported yesterday that Hualian had accused Shin Kong managers in Beijing of taking bribes and had reported the matter to the police.

Hualian's spokesman could not be reached for comment.

Shin Kong also said it did not discuss "selling its stake in the venture" during talks with its Chinese partner.

The company added that it has built a solid reputation in Taiwan, with 16 years of experience in the retail business and has become the nation's largest department chain operator.
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