The private equity owners of Bodyfriend, a South Korean massage chair manufacturer and rental company, has deferred its pre-IPO funding plan as Chinese economic retaliation for THAAD (Terminal High Altitude Area Defense) deployment in South Korea continues. 

 

Chinese investors initially showed interest, but rising political tension did not help to facilitate the negotiations. Several potential strategic investors are in the process, although discussions are “less active” at this juncture. 

 

Chinese companies are also being under tightening government control of their outbound investment, which did not encourage the potential investors to submit the application for Korean investment and seek government approvals. 

 

South Korean companies operating in China are suffering with lowering sales due to China's retaliation over the deployment of the THAAD missile defense system. The US and China are the biggest foreign markets for Bodyfriend, which was seeking opportunities to expand into those regions with business partners which can sell or distribute its products via the pre-IPO deal.

 

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