South Korea may see recovery in distribution and tourism industry

South Korea may see recovery in distribution and tourism industry


Ties between South Korea and China have deteoriated
in recent months,… in light of Beijing’s economic retaliation for Seoul’s decision
to deploy the THAAD missile defense system. But recent developments, such as an extension
of their bilateral currency swap and China’s resumption of group tours to Korea… are
fueling hopes that relations could take a turn for the better. Park Hee-jun reports. South Korea and China appear on course for
an improvement in their bilateral relationship,… with the two countries’ presidents expected
to hold a summit before the end of the year to resolve the controversial THAAD issue. Optimism has been fueled recently by developments
such as the two governments’ renewing a 56-billion-dollar currency swap deal earlier this month. And after Chinese President Xi Jinping was
re-elected as head of the Communist Party,… the two countries’ defense ministers held
their first talks in nearly two years on Tuesday. Korean companies are closely watching the
situation, which could mean a recovery in Korea’s distribution and tourism sectors. Among those watching most keenly is Lotte
Group,… one of the main targets of China’s economic retaliation. After South Korea deployed the missile defense
system to a plot of land owned by Lotte,… major Lotte affiliates experienced losses
of over 880-million dollars from Beijing’s retaliatory moves against South Korean companies. The company had more than 100 stores in China,
but now it’s closed all but 12,… and even those have seen sales drop by more than 80
percent. China’s de facto ban on travel to South Korea
has also hit the duty-free business. The drop in Chinese customers have led several
major shops to put off their grand openings until the end of next year. However, China’s travel ban South Korea may
be coming to an end,… with Chinese travel agencies slowly resuming the sale of tour
packages. Chinese airlines have also announced that
they will resume flights to Jeju Island next week. Major Korean companies, including Eland and
Ebay Korea, are making preparations for Single’s Day next month,… a major annual retail event
in China said to be on the scale of ‘Black Friday.’ Park Hee-jun, Arirang News.

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