China’s anger over THAAD missile shield will hit South Korea’s economic growth, central bank says
Growth will be shaved by 0.2 percentage points due to lower exports to China and fewer Chinese tourists visiting South Korea, says official
China’s anger over the deployment of a US-developed anti-missile system is expected to knock 0.2 percentage points off South Korea’s economic growth this year, an official at the nation’s central bank said on Thursday.
Chang Min, the director general of the Bank of Korea’s research department, said at a news conference on Thursday that the nation’s GDP would be hit by worse exports to China and fewer Chinese tourists visiting South Korea prompted by the controversy.
Seoul says the missile defence shield is needed to protect against North Korean missiles, but Beijing argues the system poses a threat to its own national security.
Some Chinese consumers have boycotted the South Korean conglomerate Lotte, which operates supermarkets on the mainland. Travel agencies have also suspended tours to South Korea.
Tensions on the Korean peninsula are rising, amid concerns that Pyongyang may conduct its sixth nuclear test this month as the reclusive state is marking several key anniversaries.