China's economic retaliation against South Korea over its decision to deploy an American anti-missile system in the country is expected to take a multi-billion dollar bite out of the South Korean economy.
However,... a local think tank says,... while South Korea is suffering the most,... China is also being hurt by its own measures.
Oh Jung-hee reports.
China could be shooting itself in the foot with its latest actions against South Korea.
A local think tank says South Korea AND China will suffer economically from Beijing's retaliatory moves against Seoul's deployment of the U.S. missile defense system THAAD.
According to a report by the Hyundai Research Institute on Wednesday,...Korea's losses due to China's economic retaliations are expected to reach roughly seven-point-five billion U.S. dollars.
That's around half-a-percent of South Korea's GDP.
China is not as badly affected,.. but still sees a minimal impact of 970 million dollars -- around zero-point-zero-one percent of its GDP.
South Korea's tourism sector is the hardest hit by China's anti-THAAD measures.
Chinese authorities slapped a ban on local sales of tour packages to South Korea in mid-March.
Assuming Korea will see a 40 percent decrease in the number of Chinese tourists from April to December,... the losses are expected to top six-point-two billion dollars.
Partly due to Korean tourists choosing to vacation elsewhere because of the anti-Korea sentiment in China,... Beijing will lose more than 900-million dollars.
South Korea's exports to China may also drop by one-point-two billion dollars... with shipments of cosmetics and food products suffering the most... due to non-tariff measures like sanitation inspections.
China's restrictions on Korean dramas and contents are estimated to cause losses for Korea amounting to some seven-point-seven million dollars.
Tightened tax probes and curtailed investment in Korean companies in China is actually having the reverse affect,... taking a toll on the Chinese side, causing over 40 million dollars in losses, but very minimal financial damage to Korea.
THAAD,... the U.S. anti-missile system at the heart of the dispute, is now operational in South Korea.
Of the four launchers brought into the country, two of them are running.... protecting the South from North Korea's missile threats.
With tensions expected to escalate between South Korea and China,... the research institute says Seoul needs to build a strong, long-term economic and diplomatic partnership with Beijing,... but lessen its dependence on Chinese investment.
Oh Jung-hee, Arirang News.
