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China puts economic squeeze on South Korea over US anti-missile system

Former defence ministry official brands THAAD system a threat to regional security as China stops tour groups heading to South Korea

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Jeju Island in South Korea is a popular destination for Chinese holidaymakers. Photo: Shutterstock

China is stepping up economic pressure on South Korea, including bans on tour groups and a retail boycott, after a Korean conglomerate agreed to supply land for a US anti-missile defence system.

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Two travel agents – one based in Beijing and the other in Guangxi – told the South China Morning Post that they were ordered on Friday to stop sending Chinese tour groups to South Korea after March 15, but tours before that date could go ahead unaffected.

Travel agencies were also ordered to stop offering all services, such as hotel and flight bookings, for individual tourists to South Korea after March 15.

Chinese cruises were not allowed to stop at South Korean ports and those who violated the rules would be punished “heavily”. The orders were relayed to travel agencies verbally, the agents said.

South Korea’s foreign ministry has said it would be “most regrettable” if China stopped its nationals from visiting as part of retaliation against Seoul’s move to host an advanced US anti-missile system.

Other retaliatory measures by Beijing include rescinding contracts between Chinese companies and Lotte, the South Korean company that agreed to supply the land for the US system, sources and mainland media reported.

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