South Korea’s tourism and retail industries have been heavily reliant on Chinese tourists for many years, but a recent shift in Chinese travelers’ preferences has led to significant changes in the market. The lifting of the Chinese government’s travel ban on group tours in August did not result in the expected surge in Chinese travelers, as experts point to evolving travel and spending patterns among the Chinese “MZ generation” as a key factor. This shift has seen more Chinese travelers opting for individual trips focused on experiencing Korean culture, rather than group tours centered around shopping and sightseeing. This change has left Korean businesses that relied on Chinese group travelers struggling, with the duty-free and cosmetics industries particularly hard hit. Korean duty-free and cosmetics companies have seen significant drops in operating profits during the third quarter, reflecting the impact of reduced spending by Chinese travelers. Experts emphasize the need for Korean businesses to diversify their target markets beyond China and adapt to the changing industry environment.