Across The Border | Why Beijing’s ‘boycott’ over missile defence system could really hurt South Korea
South Korea’s economic exposure to China leaves its tourism, consumer, auto and gaming sectors particularly vulnerable, analysts say
The economic muscle Beijing is employing to punish South Korea over the deployment of a US-backed missile defence system could have a profound effect on the latter’s economy, say analysts.
Its heavy reliance on exports to China leaves South Korea more exposed to boycotts of its goods and services than Taiwan and Japan – both of which have been similarly targeted in the past by unofficial ‘sanctions’ imposed by the mainland.
“South Korea’s economy over the last decade has really been geared towards selling to the Chinese consumer – everything from cosmetics to tourism to K-pop,” said Shaun Rein, managing director of China Market Research Group.
“The level of Chinese media attacks is much harsher towards South Korea because they know how much of Korea’s economy is geared towards China. It is easier to bully South Korea than Japan. Taiwan has back up plans due to ongoing tensions, while Korea does not.”
It is easier to bully South Korea than Japan
One thing that makes the boycott against South Korea stand out is that it is a joint initiative involving both the government and the public. The boycotts against Japan and Taiwan were mostly started by the people, said independent economist Song Qinghui, author of Interpretation of the New Normal Economic Phase.