The South Korean Finance Ministry created a special team to increase its oversight of the issues concerning China’s economy, particularly the difficulties in the property sector, according to ministry personnel on Sunday.
This action was taken after the bankruptcy filing of Chinese property giant Evergrande Group in the U.S. last week, and Country Garden’s debt problems, raising worries about the impacts on South Korea’s economy and financial system.
“Since the South Korean economy is becoming more affected by China-related matters, we are intensifying our monitoring,” a finance ministry official stated.
A financial authority official noted that South Korean banks have no direct involvement in the current crisis of Chinese property companies.
However, analysts argue that if the crisis causes unease in the international financial market, it could lead to a global economic slowdown, which could have an indirect effect on South Korea.
The finance ministry is also making efforts to take advantage of China’s decision to permit group tours to the country, and intends to release detailed plans in early September. These measures include increasing the number of flights between South Korea and China, and opening more visa application centers in Beijing and Shenyang.
China’s tourism authorities declared earlier this month that they have decided to lift the ban on group tours to South Korea, which had been in place for six years due to strained relations caused by the deployment of a U.S. defense system in the country.
Chinese tourists stand at the arrival hall of Incheon International Airport in Incheon, west of Seoul, on Aug. 15, 2023. (Yonhap)
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