Seoul’s diplomatic shift expected to fuel China tourism surge

Foreign tourists line up to enter a duty-free store in downtown Seoul, Monday. Yonhap

Under the new Lee Jae-myung administration, which advocates pragmatic diplomacy centered on national interests, Korea is expected to see a rise in tourism exchanges with China, driven by an anticipated strengthening of ties between the two countries, industry insiders said Monday.

During his campaign, Lee described China as “an important trading partner” and a country that “influences the security of the Korean Peninsula,” pledging to “stably manage the Korea-China relationship, which has deteriorated to its lowest point since the previous administration.”

In a TV debate, he said, “We should not neglect relations with China and Russia. There is no need to unnecessarily antagonize them like now.”

His remarks come after ousted President Yoon Suk Yeol prioritized closer ties with the United States while cooling relations with Beijing over the past several years. During that period, the number of Chinese tourists to South Korea nearly halved, dropping to 4.6 million in 2024 from prepandemic numbers of 8 million. This sharp decline dealt a significant blow to China-dependent industries, such as duty-free retail.

The tourism industry expects fewer diplomatic risks moving forward, unlike the 2016 Terminal High Altitude Area Defense missile deployment controversy that led to a ban on Korean cultural exports in China. That incident triggered a steep drop in Chinese tourists — from 8 million in 2016 to 4.17 million in 2017 — highlighting the vulnerability of Korea’s tourism sector to political tensions.

China’s willingness to improve relations with Korea — including the introduction of visa-free travel for Korean visitors last November — has already contributed positively to the recent rise in tourism exchanges between the two countries.

According to Incheon International Airport Corporation (IIAC), passenger traffic on routes between Korea and China reached 4.68 million from January to May this year, marking a 24.9 percent increase from the same period last year.

The increase contributed to a 6.7 percent rise in the airport’s total international passenger volume, which reached 30.41 million, according to IIAC.

Following Beijing’s visa-free policy, the number of Koreans traveling to China has surged. During a recent extended holiday in early May, Shanghai ranked third among flight reservations on Trip.com’s Korean website.

Meanwhile, duty-free retailers — long reliant on Chinese tourists — are hopeful they will benefit from the anticipated growth in tourism exchanges between the two countries.

Seoul's iconic tourism and shopping district of Myeongdong bustles with visitors, April 28. Yonhap

"The duty-free industry is bound to be sensitive to external variables, such as diplomatic issues. If the Korea-China relationship is restored by the new government, it will bring a positive impact to the industry," an official from the duty-free industry said.

Another industry official said, “If Chinese group tourists return to Korea, duty-free sales are likely to rebound by more than 30 percent compared to prepandemic levels.”

The official added, “The industry's top priority is to cooperate with the government to push for the resumption of group tours as quickly as possible,” the official said.

While Korea plans to implement a temporary visa exemption for Chinese group tourists in the third quarter, tourism industry officials remain hopeful for continued improvements in bilateral relations.

Travel insiders noted that if Chinese President Xi Jinping visits Korea during the Gyeongju Asia-Pacific Economic Cooperation (APEC) summit from late October to early November, “The psychological barrier for Chinese travelers considering Korea could be significantly lowered.”