Chinese traders, investors, and tourists are pausing to evaluate risks associated with South Korea's ongoing political turmoil, according to analysts.
Investigations surrounding South Korean President Yoon Suk-yeol's declaration of martial law are causing uncertainty about the nation's leadership and political stability.
Heightened risks may lead to delays in business decisions and investments from Chinese investors, affecting their activities in South Korea.
While some Chinese companies consider retaining projects in China, the landscape may shift investment from Korean firms overseas, particularly to Southeast Asia.
Chinese interest in traveling to South Korea has declined, with a notable drop in bookings and promotions for Korean destinations amid growing instability.