South Korean supermarket chain Emart is in negotiations with Thai conglomerate CP Group to sell off five of its stores in China, industry insiders said Friday.
 
Emart, which once had 30 stores across China, has seen the number dwindle to six, after being hit with regulatory measures and a huge decline in sales.
 
The losses are partly a result of an unofficial boycott by Beijing following the deployment of the U.S. THAAD antimissile system in South Korea.
 
An Emart official said Friday that the retailer is looking at various options, adding that although a sell-off hasn't been finalized, the company plans to withdraw from the Chinese market this year. 

Meanwhile, rival company Lotte Mart has halted operations in 87 of its 112 stores in China. With weak sales failing to cover labor and overhead costs, the company is expected to record a loss of roughly one trillion won, or nearly 900 million dollars, by the end of the year.