South Korea’s tourism, retail sectors take hits from political turmoil

SEOUL – South Korea’s tourism and retail sectors face repercussions from an escalating political turmoil, with major economies issuing heightened alerts for travellers following President Yoon Suk Yeol’s

short-lived martial law declaration last week

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Starting on Dec 4, several countries, including the US, Britain, Japan and Australia announced travel alerts, advising their citizens to avoid crowded areas and remain vigilant while staying in South Korea.

The response is a contrast to the political unrest in 2016 when former president Park Geun-hye was impeached after months of large-scale protests in central Seoul.

Back in 2016, “K-pop and Korean dramas were gaining global attention but the nation’s cultural impact was limited. But now Korea is recognised as one of the global cultural hubs and its challenges draw greater attention, whether it is politics or other societal issues,” said consumer economics professor Lee Hong-joo at Sookmyung Women’s University.

“Extreme measures like martial law risk harming the country’s global image, with significant implications for tourism and consumer confidence.”

The travel and retail sectors, already grappling with unfavorable exchange rates and a slowdown in Chinese tourists, are feeling a greater strain from the political unrest.

Retailers for beauty and fashion products said there has been no drastic decline in sales so far but they are closely monitoring the situation.

“The rapid growth in foreign millennial and Generation Z tourists in recent years has led us to invest heavily in foreigner-friendly retail infrastructure,” an official from a major retail store said. “While there is no clear evidence of reduced sales yet, this incident has everyone on edge.”

An official from a global hotel chain in Seoul reported that many foreign guests requested booking cancellations and transportation arrangements following the Dec 3 martial law decree.

“December is the peak season for global corporate workshops and year-end gatherings in Seoul. However, the current instability is expected to have a significant impact on our revenue this year,” the official added.

Korean Air, the nation’s largest flag carrier, and Hana Tour, the No. 1 travel agency, saw more than 5 per cent declines in their share prices over the past three days.

The Korean won surpassed 1,440 against the US dollar right after the martial law declaration, marking its highest level since the 2009 financial crisis. On Dec 6, the won-dollar rate closed at 1,410 after intraday fluctuations. THE KOREA HERALD/ASIA NEWS NETWORK