Retailers, hotels gear up for influx of Chinese tourists under new visa exemption rule

A tax refund notice is seen at a store in Myeong-dong, central Seoul, Sept. 7. Yonhap

Starting Monday, Chinese tour groups are allowed to enter Korea without a visa, a move fueling hopes of higher spending in the tourism and retail sectors, while also raising concerns about tourist safety amid rising anti-China sentiment in the country.

The government said earlier this month that Chinese tour groups of three or more will be allowed to enter Korea without a visa for up to 15 days. The program will run from Sept. 29 through June 30 next year, and is open to groups recruited by government-designated domestic and overseas travel agencies.

Jeju Island will continue its existing visa-free policy, which allows both individual and group travelers to stay for up to 30 days.

The decision came last November, after China announced a visa-free policy allowing Korean nationals to visit for up to 15 days for business, tourism, family visits and transit through the end of this year.

Until now, Chinese tourists visiting Korea generally had to apply for a visa at Korean embassies, consulates or designated visa centers in China, typically submitting documents such as round-trip tickets and hotel reservations.

Visitors look at products at Lotte Duty Free in downtown Seoul, Sept. 7. Yonhap

The government expects the policy to draw roughly 1 million additional Chinese visitors by the time it ends in June next year.

According to the Korea Tourism Organization, more than 1.73 million foreign tourists visited Korea in July, with Chinese visitors making up the largest share at 34.7 percent, or 602,147 people — up 31.2 percent from a year earlier.

While the tourism industry is not expecting an immediate boom, it is ramping up efforts to attract Chinese group tours.

Jeju Dream Tower Integrated Resort is offering restaurant and spa discounts through a promotion with WeChat Pay, a popular payment platform among Chinese nationals.

Shinsegae Duty Free is giving foreign customers a bag featuring the Chinese character for luck, along with WeChat Pay cashback and food delivery coupons for groups of three or more.

Lotte Department Store is offering keychains and string bags to Chinese customers at Kinetic Ground, its fashion specialty hall in Seoul.

The convenience store chain GS25 is offering discounts and prize events for Alipay users, while health and beauty retailer CJ Olive Young has expanded its foreign-language staff nationwide and installed instant VAT refund terminals.

Members of a far-right group supporting former President Yoon Suk Yeol hold an anti-China rally near the Chinese Embassy in Myeong-dong, central Seoul, Sept. 19. Yonhap

As businesses brace for an influx of Chinese tourists, the Chinese Embassy in Seoul has urged its citizens to exercise caution amid rising anti-China protests.

“Protests targeting Chinese nationals have taken place from time to time in some parts of Korea, particularly in Seoul’s Myeong-dong and Daerim-dong,” the embassy said on social media Friday.

Myeong-dong is home to the Chinese Embassy, while Daerim-dong is a neighborhood with a large ethnic Chinese population.

“We advise Chinese visitors to stay vigilant, strengthen their sense of self-protection, avoid political gatherings and refrain from making political statements in public,” the embassy added.

Since former President Yoon Suk Yeol’s martial law declaration last year and his claims of election fraud, anti-China sentiment has grown in Korea, particularly among right-wing groups who allege Chinese meddling in domestic politics.

This month, President Lee Jae Myung ordered officials to draw up countermeasures against the increasing number of anti-Chinese rallies. Prime Minister Kim Min-seok directed police to maintain order and protect merchants, residents and Chinese nationals in the affected areas.