China slowdown will force South Korea to adapt

Subject

The effect of China's economic slowdown on South Korea.

Significance

The effects of the slowdown in the Chinese economy, the devaluation of its currency and stock market volatility are being felt around the world. China is South Korea's most important trading partner by far, the destination for more than one-quarter of the country's exports.

Impacts

• Continuing decline in exports may feed through into weaker consumer confidence and domestic consumption.
• Volatility in the Chinese stock market is unlikely to be replicated in South Korea.
• Chinese tourism to South Korea may be hurt less than some fear.