▲ The conflict surrounding THAAD

China restricts South korea retailers sale busniess in china and tours to Seoul in retaliation against the installation of a Terminal High Altitude Area Defense (THAAD).

In this situation, South Korea economy constantly got worse. for example, Lotte Mart said its sales in China rapidly decresed 64.7 percent at the first eight months of this year. In other words, 1.16 trillion won tallied

during the same period a year earlier declined into 410 billion won on this year.

▲ Closed Lotte-Mart

Also E-Mart, recently signed a deal with a Thai company to sell off five of its six stores in China, effectively

ending its 20-year presence in chinese market.

Another victim of chinese economic retaliation is Hyundai motor. In the July-September quarter, Hyundai Motor's net profit fell to 939.2 billion won from 1.12 trillion won a year earlier.
In tourism industry, The number of chinese tourists to South korea was sharply declined. by Hyundai reserch, if chinese economic retaliation coutinue, it is predicted that South Korea's tourism industry may suffer from an estimated 81.6 trillion won of losses and around 40,000 workers in the industry might lose their jobs. Also The tourism industry is expected to see around 18.7 trillion won of losses only in this year.

▲ The solution of retaliation

South korea economy go worse constantly, However, goverment of South korea didn't suggest proper soulution yet. It brings about huge damage to South korea economy. Therefore before the crisis go worse, the goverement should solve this problem as soon as possible. The ways that solve this situation are exist. but each solutions has pros and cons. So it is need deliberate discuss to choose soultions.
First, the goverment can use WTO complaints. it can be used to react about chinese retaliation. But it has chance of winning also have likelihood of losing. So it should used carefully.
Second, making International Relations of China's Unfair Trade Activities.In this way, the government needs to reinforece cooperation with other countries to react chinese retaliation in international position.
But it is hard to draw agreement with other country.
As a result, the most important thing to cope with this situation and minimize the damage is goverment's deliberate and prompt decision.

October 28th, 2017 by Kim Hyeung-jo