South Korea lost at least trillions due to the US "THAAD"?

South Korean media recently made statistics on the impact on major South Korean companies in the Chinese market due to the installation of the US "THAAD". Statistics show that in the first half of this year alone, Korean companies lost trillions of won.

According to estimates, Hyundai and Kia Motors sold only 429,000 vehicles in the Chinese market in the first half of the year, returning to the level when they first entered the Chinese market in 2009, with operating losses reaching 5 trillion won (approximately 1 US dollar). 1,152 won). Korean media reported that Korean small and medium-sized cooperative companies that supply Hyundai and Kia Motors' Chinese factories are in a more difficult situation. As of May, Korean companies exported only US$1.56 billion in auto parts to China, a sharp drop of 33.2% year-on-year.

Affected by the "THAAD" issue, Chinese tourists to South Korea have dropped sharply since March 15. In April, the sales growth rate of South Korean duty-free shops was only 1.6%, and the number of foreign customers also fell below one million. , a new low since the Middle East Respiratory Syndrome epidemic in 2015. From January to May this year, the 10 regular ferry routes between Incheon Port and China transported a total of 244,500 passengers, a decrease of 34.2% compared with the same period last year. In particular, routes favored by Chinese group tourists such as "Incheon-Tianjin" were affected by the THAAD issue, and the number of passengers dropped by more than half year-on-year.

Since March this year, South Korean duty-free shops have lost about 600 billion won in three months. Hanwha Galleria Duty Free announced that it will give up operating the Jeju Airport Duty Free Shop.

Of the 99 Lotte Mart stores in China, 87 are still closed (including 13 stores that have voluntarily closed). Its own operating losses, coupled with the fact that Lotte Mart still paid full wages to its employees despite the suspension of operations, Lotte Mart's losses are expected to reach 500 billion won in four months. Orion, a snack brand that has always been a hot seller in the Chinese market, has also seen a sharp decline in sales. In May this year, sales at Orion's four Chinese factories dropped by 40% year-on-year.

South Korean media said that people in the duty-free shop industry are full of expectations for getting out of the "THAAD dilemma". However, industry insiders also believe that it is too early to conclude that China-South Korea tourism can recover at this time. Because it is necessary to recruit group tourists again, it will take at least two to three months to develop tourism products. This round of tourism depression will last until the end of the year at least.

This kind of behavior in South Korea can be called self-defeating.