Car sales have more than halved, dozens of supermarkets have closed and tourist visits are down nearly 70 per cent as a government-led Chinese boycott of South Korean companies over Seoul’s missile shield takes a toll on business.
Beijing has waged a campaign against South Korean groups since Seoul agreed in July 2016 to host the Terminal High Altitude Area Defence (Thaad), a US missile defence system. It says it threatens China’s security and has responded with criticism in state media, investigations of South Korean companies and a ban on tour groups visiting the country.
Some expected the sanctions and their effect to be short lived. But as tensions on the Korean peninsular persist, and with South Korea’s President Moon Jae-in warning Pyongyang against crossing a “red line” in developing nuclear weapons, companies are counting the cost.