South Korea’s tourism industry has been hit hard by China’s retaliation over the deployment of the US missile shield, known as the Terminal High Altitude Area Defense (THAAD). Until earlier this year, China had been South Korea’s top source of visitors, providing almost half of all foreign travellers. However, after South Korea began installing the missile system in March, Beijing accused Seoul of allowing the US to use it to spy on China’s military. In response, China placed a series of restrictions on South Korean goods, services and tourists. Airlines and travel agencies were told to stop selling package tours to South Korea, while cruise lines cancelled scheduled visits to ports. As a result, visitor numbers from China plummeted; in May, they were down more than 60% compared to the same period in 2016. Meanwhile, South Korean duty-free stores have seen sales slump by around 30%, prompting some to lay off staff. The tourism industry accounts for around 3% of South Korea’s GDP and is a crucial employer. In 2016, the country’s 17 million visitors spent more than $30bn.