Why did the Sadr incident cause South Korea's economy to plummet and GDP to drop by 0.3%?

On March 12, the media said that the tourism concept stocks in the Korean stock market fell. The background is that the South Korean authorities have taken measures to restrict Korean tourists from traveling to the south of China. This move is regarded as China's "revenge" on South Korea's decision to deploy the Terminal High Altitude Area Defense System (THAAD), and there are voices worried that South Korea's tourism industry will be hit hard.

10 On March 3rd, when the news spread that "China forbids traveling to Korea", Korean tourism concept stocks were hit. The share price of cosmetics giant Amore Pacific Construction Group fell nearly 13%. The share price of LG Life Health in the same industry fell by more than 8%. The share price of Silla Hotel, which operates duty-free shops, fell by more than 13%. The reason is that more and more voices in the market are worried that sales to China people will decrease.

On the 2nd, China National Tourism Administration stopped travel agencies around Beijing from selling travel goods to South Korea. It is said that consumers can't buy Korean tour products, including online products.

In addition, on the 3rd, China National Tourism Administration (CNTA) issued a notice about Korean people traveling to China, saying, "(CNTA) reminds Korean citizens to pay attention to the risks of outbound travel and choose their destinations carefully".

Like Japan and Thailand, South China is a popular tourist destination. From 20 17 to 17, there were 565,000 tourists visiting China, accounting for 46.3% of the total number of foreigners visiting Korea.

According to the capital economy calculation of the survey company, due to the decrease of Korean tourists, the growth rate (GDP) of South China will be reduced by 0.3 percentage points in 20 17.

Since the South Korean government announced the decision to deploy the Sadr system in the summer of 20 16, the China authorities have taken measures such as restricting Korean artists and TV dramas, and put pressure on South Korea in various ways.

20 17 After Lotte Group decided to provide land for the deployment of "Sade" system at the end of February, there was a movement to boycott Lotte products in China. Lotte's website was hacked, and some supermarkets in China were forced to close. The share price of Lotte Shopping also fell. If the "No Korea" brand of the world's second largest economy is upgraded, it may also have an impact on export industries such as automobiles.