Yi Whan-woo is a Korea Times journalist primarily covering finance. He writes in-depth articles on macroeconomy and financial markets and previously covered sports, politics, diplomacy and inter-Korean affairs, among others. Feel free to contact him at yistory@koreatimes.co.kr.
'THAAD retaliation appears to be continuing'
A currency trader walks by a screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room in Seoul, Nov. 7. Asian stocks are mostly lower after a meandering day of trading left U.S. stock indexes close to their record highs. AP-Yonhap
By Yi Whan-woo
By Yi Whan-woo
China seems to be continuing economic retaliation against South Korea for hosting a U.S. missile shield, despite recent Seoul-Beijing agreements to end the dispute.
Travel agencies in Beijing still prevent searches for group travel packages to South Korea on their websites, local tourism sources said, Wednesday.
They say such circumstances remind them of Chinese authorities' suspected ban of group travel packages to South Korea, in response to Seoul's decision in 2016 for the deployment of the Terminal High Altitude Area Defense (THAAD) system.
The suspected ban on group travel packages was initially believed to be removed after the Seoul-Beijing agreement in October 2017. The concerts of K-pop stars are still unheard of in China.
“I'd say China is disgruntled with South Korea over its U.S.-reliant security policy,” said An Chan-il, a researcher in Seoul. “Beijing appears to be sending a warning that economic retaliation can happen if Seoul gets on its nerves.”
Another researcher in Seoul, who wanted to be identified only by his surname Lee, voiced a similar view.
“China's bullying of South Korea does not seem to be over yet,” he said.
Lee referred to recent reports that the University of Rochester's Eastman School of Music had canceled plans to tour China after its three South Korean members failed to apply for visas.
The report cited Eastman Dean Jamal Rossi as claiming that the move came in response to THAAD deployment.
Whether that is true has not been confirmed and South Korean officials are working to determine the facts.
The Chinese foreign ministry said it was not aware of the situation, describing it as an individual affair.”
“But whatever the truth is, the assumption is China is capable of bullying South Korea over THAAD,” Lee said. “This is what happens when you remain low key to a country just because it is bigger and stronger.”
Speaking on condition of anonymity, a Seoul government official said Chinese restrictions on South Korea's business activities are “very limited,” adding “The bilateral relations have improved a lot.”
The anti-missile system was deployed in September 2017 on a golf course owned by Lotte Group in Seongju County, North Gyeongsang Province.
The two allies viewed THAAD as critical for North Korea's ballistic missile threat. But Beijing argued THAAD's long-range radar could be used to spy on Chinese military activities and that it is a part of the U.S. strategy to contain an emerging China.
Among the retaliatory measures were a ban on charter flights between China and South Korea, regulations curbing activities of South Korean businesses in China and restricting K-pop stars' activities in the country.
In addition to THAAD, the U.S. in August announced a plan to deploy an intermediate-range, ground-based missile system in Asia, with South Korea, Japan and Australia being candidate sites.
China then threatened to take countermeasures against the proposed deployment, saying it would “not serve the national security interests of these countries.”
“The possibility exists for South Korea to face another THAAD retaliation. And this makes balanced diplomacy increasingly important,” said An.