[Beijing Diary] Will the Hanhanryeong Really Come to an End?

[Asia Economy Beijing=Special Correspondent Kim Hyunjung] News from Korea says that there is a wave of interest in finding related stocks amid expectations for the lifting of China’s Hanhanryeong (限韓令·Korean Wave Restriction Order). The stock prices of cosmetics companies, game companies, and content companies that were popular among Chinese people several years ago also seem to be fluctuating. Is Hanhanryeong really coming to an end?

However, this issue is not easy to answer. China, which holds the key to lifting Hanhanryeong, basically claims that Hanhanryeong never existed in the first place. Last month, as Korean movie services resumed on Chinese online video service (OTT) platforms after six years, Zhao Lijian, spokesperson for the Chinese Ministry of Foreign Affairs, gave a baffling response to a reporter’s question about whether this meant the lifting of Hanhanryeong, saying, "We have never implemented Hanhanryeong." This is one aspect that shows how endless and futile the interpretations of each side regarding Korea-China relations after South Korea’s decision to deploy the Terminal High Altitude Area Defense (THAAD) system have been.

Regarding the closure of business establishments of companies that provided the THAAD site, China cites hygiene inspections and fire safety checks, and for the suspension of distribution of Korean dramas, various games, and movies, it claims voluntary judgments and actions by the cultural sector as nominal reasons. China has never acknowledged retaliatory sentiments against Korea or organized government-level movements. Hanhanryeong is thus an invisible barrier and an intangible weapon. It can quietly start and disappear, but likewise, it can resume at any time without notice.

On the 24th, marking the 30th anniversary of Korea-China diplomatic relations, Chinese-language and other guidebooks were placed at the Myeongdong Tourist Information Center in Jung-gu, Seoul. In recent years, amid issues such as the deployment of THAAD by the US Forces Korea, the "Hanhanryeong (Korean Wave Restriction Order)," and the spread of COVID-19, the number of Chinese tourists visiting Korea has decreased. Attention is now focused on whether the number of Chinese tourists will recover depending on future diplomatic relations between the two countries. Photo by Kim Hyun-min kimhyun81@

Looking at the expectations surrounding the lifting of Hanhanryeong, there is another uneasy feeling from a different perspective. Is it reasonable to attribute the poor performance of Korean products and content in China solely to Hanhanryeong? Once the specter of Hanhanryeong disappears, will all Made-in-Korea products regain their past glory? Is the expectation that everything Korean will be accepted once the door opens not arrogance and complacency?

Korean cosmetics, which once enjoyed tremendous popularity in China, are now hardly sought after locally. Stores that used to shine with signs in every bustling street have mostly disappeared, and even those remaining are generally staffed only by employees. A source said, "Over the past three years, due to zero-COVID policies, stores were locked up, and more Chinese people naturally turned their attention to domestic cosmetics and judged that ‘they are not bad after trying them.’" Initially, sales were sluggish due to distribution restrictions caused by the government’s intentional quarantine and customs strengthening, but now, in a market polarized between China’s low-priced brands that have achieved qualitative growth and ultra-high-end foreign brands, Korean products have become ambiguous in their position. A recent industry insider also commented on Korean games, saying, "China’s production technology has grown unimaginably fast," and added, "If it weren’t for the Chinese government’s strong regulations on the gaming industry, Korean games would have had a hard time competing even without Hanhanryeong."

Many experts point to overly optimistic approaches and hasty reactions as the most chronic flaws of Korean diplomacy. The views of some regarding the lifting of Hanhanryeong do not seem different. Before prematurely celebrating or harboring vague expectations that things will go well, it is necessary to first diagnose whether Korean products and content still possess their past competitiveness.