South Korea tends to keep a low profile internationally, seemingly content to nurture their chaebols and leave high politics to other powers. North Korea's pursuit of missile technology over the years has drawn a series of increasingly firm responses from the U.S., which recently deployed preliminary elements of their THAAD missile defence system to South Korea. In effect this means South Korea is caught in the middle of a great power rivalry and dependent on factors outside of its control. The next step for South Korea would be to try and discuss the matter with Chinese officials, but China are apparently stonewalling. Credit Suisse, however, estimated that China's travel restrictions alone could cost South Korea anywhere between 0.5% (if only affecting Chinese tour groups) to 1.2% of GDP.

Source: Forbes March 24, 2017 05:11 UTC