China’s investors, tourists hit pause to size up risks of turmoil in Seoul

China’s traders, investors and tourists are likely to pause and examine the risks of South Korea’s prolonged political turmoil in the months ahead, analysts said – with some possibly halting their business or activity outright until more stable circumstances present themselves.

Chinese traders are sizing up the odds of more street protests in Seoul and further “policy paralysis” over the next six months, said Nick Marro, principal economist for Asia at the Economist Intelligence Unit.

Korean chipmakers with investments in China are also assessing the terrain, said Victor Gao, vice-president of the Beijing-based think tank Centre for China and Globalisation.

Those giant companies might decide to retain their China projects if Yoon leaves office, he said. US officials asked Yoon’s government to restrict semiconductor technology exports to China last year, in line with curbs imposed by Washington.