A report from Chinese news agency Yonhap urging travel agents to stop selling holiday packages to Korea caused a sell-off of shares in South Korean hotels, cosmetic manufacturers and other industries linked to tourism. China claims South Korea's planned deployment of an American missile defence system would upset the military balance on the Korean peninsula. Asset manager Jung Sang Jin noted that many South Korean companies have plants in China that could be affected by a crackdown. The latest spat comes as North Korea, which has been under UN sanctions since 2006, is trying to improve relations with China.
A report from Chinese news agency Yonhap urging travel agents to stop selling holiday packages to Korea caused a sell-off of shares in South Korean hotels, cosmetic manufacturers and other industries linked to tourism. China claims South Korea's planned deployment of an American missile defence system would upset the military balance on the Korean peninsula. Asset manager Jung Sang Jin noted that many South Korean companies have plants in China that could be affected by a crackdown. Chinese authorities recently ordered the destruction of about 700kg of product from Amorepacfic, South Korea's biggest cosmetic company, on claims they contained bacteria.