Published on : Friday, March 24, 2017
In order to support the country’s tourism industry, which has been hit by China’s apparent retaliation against the deployment of the THAAD missile defense system on the Korean peninsula, the Korean government has vowed to act prompt.
For the tourism sector, the Korean government will set aside some 420 million U.S. dollars in funds and provide additional support to companies for maintain their workforce instead of laying off employees.
The government will also strive to bring tourists from other countries by issuing electronic visa system for tour groups from Southeast Asia and set up a platform for distributing information and promotions to attract individual tourists. If China steps up further retaliatory action, Korean economy could face losses of some 20 billion dollars. The cosmetics industry, tourism and duty-free shops would be the worst hit sectors. The tourism sector could see its revenue drop by almost 6.4 billion.
There are already few unofficial sanctions from Beijing, including suspensions on Korean retail stores operating in China, getting tougher on Korean imports and banning group tour packages to Korea. While it remains to be seen which path China decides to take, experts say given Beijing’s rigid approach to Japan and Taiwan over similar disputes in the past, its retaliatory actions against Korea could prolong for some time.