SEOUL (Reuters) - South Korea's government will consider filing a complaint to the World Trade Organization against what they described as China's trade retaliation after Seoul agreed to deploy a U.S. anti-missile system, the ruling party said on Tuesday.
Beijing is widely believed in South Korea to be retaliating against some of its companies and cancelling performances by Korean artists after South Korea's decision to deploy the Terminal High Altitude Area Defense (THAAD) system.
"We will actively consider whether China's action is in violation of the South Korea-China free trade deal, while stepping up efforts to minimize damage on South Korean industries," Lee Hyun-jae, chairman of the Liberty Korea Party's policy committee, said after meeting senior government officials.
China rejected applications by some Korean carriers, including Jeju Air (KS:089590), to add charter flights between the two countries in March, Yonhap News Agency said on Tuesday, in what is seen as China's latest retaliation against South Korean firms. Their applications for charter flights to China were rejected for January and February, with no reason given, Yonhap said.
The Chinese government last week ordered tour operators in China to stop selling trips to South Korea, days after the Seoul government secured land for the THAAD system from Lotte Group.
Lee said on Tuesday the government had since agreed to provide an additional 50 billion won ($43.3 million) worth of "special loans" to tourism companies that are experiencing business difficulties.
Chinese authorities have also closed nearly two dozen of Lotte Group's retail stores following inspections, Lotte said on Monday.
China objects to the THAAD deployment, saying its territory is the target of the system's far-reaching radar. South Korea and the United States have said the missile system is aimed only at curbing North Korean provocations.