[Courtesy of Lotte Department]
South Korean cosmetics makers hit 52-week lows on the local stock market Tuesday amid increased concerns over a standoff between South Korea and China over a US missile defense system.
In Beijing, it has been confirmed that the Chinese authorities have recently refused to approve imports of massive amounts of South Korean cosmetics, apparently due to the rising conflict over the missile defense system called THAAD.
AmorePacific Co., the country's No. 1 cosmetics maker, and other companies dependent on the Chinese market have been under heavy selling since July last year when South Korea announced a plan to install THAAD, which has drawn strong opposition from China.
Many South Korean companies are heavily dependent on Chinese consumers and travelers as their main revenue sources.
China is believed to be taking economic retaliation against Seoul's decision to deploy THAAD, although Seoul and Washington claim that the missile system is aimed at countering threats from North Korea.
According to industry sources in Beijing, 19 out of 28 beauty products that failed to receive import approval from the Chinese authorities were South Korean made goods, with a total of 1,172 tons of cosmetics and related South Korean products being returned.
"Those products returned this time failed to receive approval in November last year," said a source in Beijing asking not to be named. "Concerns are growing over tightened import regulations on South Korean beauty products."
Popular South Korean entertainers have virtually been banned from performing in China since late last year as the bilateral relations soured over the deployment plan, which China insists could compromise its regional security interests.
(Yonhap)
reporter
Park Sae-jin
swatchsjp@ajunews.com
