Benchmark
China’s Missile Sanctions Are Taking a Heavy Toll on Both Koreas
- Retaliation costs South Korea $4.7 billion from tourism alone
- China has virtually wiped out North Korean commodity exports
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With geopolitical tensions rising in North Asia, China has tightened the economic screws on both Koreas -- on the North for firing missiles, and on the South for deploying a shield to stop them.
In dollar terms, South Korea looks worse off, taking a $4.7 billion hit from the drop in tourism alone. Adding in falling sales of South Korean cars, cosmetics and other goods in China, the dispute will cut 0.3 percentage point from growth this year, according to the central bank in Seoul.