South Korean cosmetics industry under threat over THAAD deployment

The South Korean Government’s decision to deploy the Terminal High-Altitude Area Defense (THAAD) system in the country could reportedly affect its cosmetics industry.

South Korea and the US have recently joined forces to deploy THAAD system to counter North Korean missile threats.

China is consequently pressurising South Korean cosmetic manufacturers by tightening import customs clearance procedures.

China's retaliatory move comes on the heels of the Korean Government's announcement to impose duty-free limits in an effort to stop third-party cosmetics sales in China, Cosmeticsdesign-asia.com reported.

Securing multiple entry visas will become difficult for the Korean companies as China recently closed a visa agency catering to South Koreans.

China is also strengthening sanitary inspections of South Korean cosmetic products.

South Korean cosmetic company AmorePacific official was quoted by The Korea Times as saying: "We are aware that company shares have been on a downhill slide over the past week amid China's growing opposition to Korea's THAAD deployment.

"But there isn't much for us to do other than closely monitor the situation."

In addition to beauty products companies, South Korean entertainment and tourism firms could also face the impact of China's retaliatory decision.