South Korea’s incoming President Moon Jae-in has expressed dismay at the surprise arrival of four additional missile launchers for the country’s Terminal High-Altitude Area Defense (THAAD) system – particularly as he continues to try and mediate with China over its total opposition to it and the resulting huge drop in Chinese visitors to the country.

 

The development is not helpful for Moon, since his original election platform included a promise for a total review of the original two-launch system and a new effort to try to mend some bridges with China over its objections to it.

 

In addition to the two missile launchers already installed on South Korean soil, the news of this additional hardware only became public after one of the president’s advisors made it known on national television.

 

[Korean media reports today quote President Moon’s administration alleging that South Korea’s Defense Ministry deliberately kept the additional THAAD launchers a secret from Moon’s administration-Ed].

 

KOREA’S TOURISM INDUSTRY COULD LOSE $10BN

As reported, the Chinese government’s reaction to the deployment of THAAD has been severe, with Chinese travel agents clearly being ‘instructed’ to send Chinese overseas travellers anywhere other than South Korea.

 

The country’s duty free shops have also continued to suffer extreme losses from lower numbers of Chinese tourists – mostly young females – with all Chinese arrivals down by 40% in March, according to the Korea Tourism Organization.

 

 

Current loose estimates across the board suggest that the country could lose up to $10bn in total tourism receipts this year if the Chinese tourist ‘embargo’ on South Korea continues.

 

Having said this, other South Korean businesses have also continued to suffer very badly within China’s domestic market itself, with many closing, as already documented by TRBusiness.

 

Lotte in particular has really felt the pressure, after it was seemingly obliged to sell land to the previous government on which that administration promptly sited its new missile defence system. More than 80 Lotte Marts have now closed in China, while Korean car export sales are estimated to be 50% down, along with other boycotted goods.

 

As reported, China objects to the missile system’s radar capability, claiming it has the range to spy on its own military installations.

 

While Moon was clearly unconvinced on either the wisdom or level of public support for THAAD when he became President earlier this month, this issue has now become extremely complex.

 

MULTIPLE CORRUPTION CHARGES

Especially following the subsequent and almost routine multiple test missile firings by North Korea, which have raised temperatures and tensions considerably amongst South Koreans.

 

In addition to this, Moon is also about to address the next major phase of the multiple outstanding corruption charges levelled against former President Park Geun-hye, who is currently in jail.

 

His commitment to this process has been bolstered with the appointment of four new cabinet members, including – most significantly – Do Jong-hwan.

 

The latter individual gained huge popular local support prior to last March’s impeachment and arrest of former President Park Geun-hye, after he stood firmly behind the multiple allegations against her as a prosecutor – despite coming under intense pressure from her administration to back off.

 

DO JONG-HWAN HELD IN HIGH REGARD

He is also credited with alerting others to the depth of the alleged corruption, whilst encouraging them to act upon their suspicions – subsequently proven – that President Park’s confident Choi Soon-sil had asked major company leaders for monetary donations – including the Samsung Group.

 

As reported already, Samsung Electronics Vice Chairman Lee Jae-yong was arrested in connection with these ‘donations’, although he is not being held in custody. This allegedly included monies for Choi’s 21-year old daughter – based for the last eight months in Denmark – who was extradited back to Seoul yesterday.

 

She fled Seoul after her mother Choi Soon-sil was arrested and now faces similar charges of conspiring to obtain monies by deception.