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The Korea Herald
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THE INVESTOR
March 29, 2024

Economy

Korea likely to suffer US$20b damages on THAAD row

  • PUBLISHED :March 22, 2017 - 16:51
  • UPDATED :March 22, 2017 - 16:51
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[THE INVESTOR] The South Korean economy could suffer US$20 billion losses if China steps up the retaliatory measures following the deployment of THAAD missile system, Korea Development Bank’s think tank projected on March 22.

Since Seoul and Washington finalized the deployment of defense system in South Korea, China has executed a series of economic measures against Korea, including banning group tours to Korea. 




According to the KDB’s think tank, should China introduce tougher measures, South Korea’s exports to the country would drop US$8.3 billion and tourism-related industries will see revenue fall US$11.7 billion.

The think tank estimates that China’s existing retaliatory measures would lead to exports to China dropping US$2.6 billion, and that tourism-related industries will see a US$7.4 billion drop in revenue.

The think tank said that the impact will be the greatest on the cosmetics and tourism industries, and duty-free store operators.

It estimated that local cosmetics makers would sustain damages of US$1.43 billion, while the losses for the tourism industry and duty-free store operators would come to over US$11.6 billion should China apply greater pressure.

Local auto parts makers would see sales drop by US$380 million, cellphone makers US$778 million, and the petrochemicals industry US$5.1 billion, the think tank projected.

By Choi He-suk (cheesuk@heraldcorp.com)

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