By Lee Hae-rin Beijing’s overtures already appear to signal thaw in relations

Under the new Lee Jae-myung administration, which advocates pragmatic diplomacy centered on national interests, Korea is expected to see a rise in tourism exchanges with China, driven by an anticipated strengthening of ties between the two countries, industry insiders said Monday.

During his campaign, Lee described China as “an important trading partner” and a country that “influences the security of the Korean Peninsula,” pledging to “stably manage the Korea-China relationship, which has deteriorated to its lowest point since the previous administration.”

In a TV debate, he said, “We should not neglect relations with China and Russia. There is no need to unnecessarily antagonize them like now.”

His remarks come after ousted President Yoon Suk Yeol prioritized closer ties with the United States while cooling relations with Beijing over the past several years. During that period, the number of Chinese tourists to South Korea nearly halved, dropping to 4.6 million in 2024 from prepandemic numbers of 8 million. This sharp decline dealt a significant blow to China-dependent industries, such as duty-free retail.

The tourism industry expects fewer diplomatic risks moving forward, unlike the 2016 Terminal High Altitude Area Defense missile deployment controversy that led to a ban on Korean cultural exports in China. That incident triggered a steep drop in Chinese tourists — from 8 million in 2016 to 4.17 million in 2017 — highlighting the vulnerability of Korea’s tourism sector to political tensions.

China’s willingness to improve relations with Korea — including the introduction of visa-free travel for Korean visitors last November — has already contributed positively to the recent rise in tourism exchanges between the two countries.

According to Incheon International Airport Corporation (IIAC), passenger traffic on routes between Korea and China reached 4.68 million from January to May this year, marking a 24.9 percent increase from the same period last year.

The increase contributed to a 6.7 percent rise in the airport’s total international passenger volume, which reached 30.41 million, according to IIAC.

Following Beijing’s visa-free policy, the number of Koreans traveling to China has surged. During a recent extended holiday in early May, Shanghai ranked third among flight reservations on Trip.com’s Korean website.

Meanwhile, duty-free retailers — long reliant on Chinese tourists — are hopeful they will benefit from the anticipated growth in tourism exchanges between the two countries.

“The duty-free industry is bound to be sensitive to external variables, such as diplomatic issues. If the Korea-China relationship is restored by the new government, it will bring a positive impact to the industry,” an official from the duty-free industry said.

Another industry official said, “If Chinese group tourists return to Korea, duty-free sales are likely to rebound by more than 30 percent compared to prepandemic levels.”

The official added, “The industry’s top priority is to cooperate with the government to push for the resumption of group tours as quickly as possible,” the official said.

While Korea plans to implement a temporary visa exemption for Chinese group tourists in the third quarter, tourism industry officials remain hopeful for continued improvements in bilateral relations.

Travel insiders noted that if Chinese President Xi Jinping visits Korea during the Gyeongju Asia-Pacific Economic Cooperation (APEC) summit from late October to early November, “The psychological barrier for Chinese travelers considering Korea could be significantly lowered.”

South Korean President Lee Jae-myung (C) and his wife Kim Hye-Kyung (L) arrive for a ceremony to mark the 70th Memorial Day at the Seoul National Cemetery in Seoul, South Korea, 06 June 2025. JEON HEON-KYUN/Pool via REUTERS/File Photo Purchase Licensing Rights , opens new tab

Item 1 of 2 South Korean President Lee Jae-myung (C) and his wife Kim Hye-Kyung (L) arrive for a ceremony to mark the 70th Memorial Day at the Seoul National Cemetery in Seoul, South Korea, 06 June 2025. JEON HEON-KYUN/Pool via REUTERS/File Photo

SEOUL/BEIJING, June 10 (Reuters) – South Korean President Lee Jae-myung and Chinese President Xi Jinping pledged on Tuesday to work for substantive advances in economic ties and peace and security on the Korean peninsula, Lee’s office said.

In their first phone call since Lee took office last week, the South Korean president told Xi he hoped the two countries would pursue a more active exchange and cooperation in the areas of economy, security and culture, his spokesperson said.

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“President Lee requested China to play a constructive role for the denuclearisation of the Korean peninsula and peace and security,” Kang Yu-jung told a briefing.

“President Xi in response said the Chinese side would make efforts for the resolution of the issues … as they are matters of common interest to the two countries,” Kang said.

Lee took office on June 4 after winning the presidency in a snap election called after the ouster of Yoon Suk Yeol over a failed martial law attempt in December. Lee has since spoken to U.S. President Donald Trump and Japanese Prime Minister Shigeru Ishiba.

Chinese state media earlier said Xi told Lee that the two countries should respect each other’s core interests and major concerns, and ensure ties move forward “on the right track.”

A strategic cooperative partnership between both countries would bring more benefits to both and “inject more certainty into the chaotic regional and international situation,” Xi was quoted as saying by state broadcaster CCTV.

China is South Korea’s biggest trading partner and diplomatic relations between the two have improved since a 2017 spat over South Korea’s installation of a U.S. missile defence system that Beijing opposed.

While reiterating the importance of the U.S.-South Korea alliance, Lee has also expressed more conciliatory plans for ties with China and North Korea, singling out the importance of China as a major trading partner while indicating a reluctance to take a firm stance on security tensions in the Taiwan Strait.

Reporting by Jack Kim, Ju-min Park in Seoul, Yukun Zhang and the Beijing newsroom; Editing by Jacqueline Wong, Muralikumar Anantharaman and Raju Gopalakrishnan

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In their first phone call since Mr Lee Jae-myung (right) took office last week, Mr Xi Jinping (left) said healthy and stable China-South Korea relations were conducive to regional and world peace and stability. PHOTOS: REUTERS, EPA-EFE

SEOUL/ BEIJING – South Korean President Lee Jae-myung and Chinese President Xi Jinping pledged on June 10 to work for substantive advances in economic ties and peace and security on the Korean peninsula, Mr Lee’s office said.

In their first phone call since Mr Lee took office last week, the South Korean president told Mr Xi he hoped the two countries would pursue a more active exchange and cooperation in the areas of economy, security and culture, his spokeswoman said.

“President Lee requested China to play a constructive role for the denuclearisation of the Korean peninsula and peace and security,” Ms Kang Yu-jung told a briefing.

“President Xi in response said the Chinese side would make efforts for the resolution of the issues… as they are matters of common interest to the two countries,” Ms Kang said.

Mr Lee took office on June 4 after winning the presidency in a snap election called after the ouster of Yoon Suk Yeol over a failed martial law attempt in December.

Mr Lee has since spoken to US President Donald Trump and Japanese Prime Minister Shigeru Ishiba.

Chinese state media earlier said Mr Xi told Mr Lee that the two countries should respect each other’s core interests and major concerns, and ensure ties move forward “on the right track.”

A strategic cooperative partnership between both countries would bring more benefits to both and “inject more certainty into the chaotic regional and international situation,” Mr Xi was quoted as saying by state broadcaster CCTV.

Mr Xi urged the two countries to strengthen exchanges, adhere to the direction of “friendly neighbours” and jointly safeguard global and regional industrial, supply chains.

China is South Korea’s biggest trading partner, and diplomatic relations between the two have improved since a 2017 spat over South Korea’s installation of a US missile defence system that Beijing opposed.

While reiterating the importance of the US-South Korea alliance, Mr Lee has also expressed more conciliatory plans for ties with China and North Korea, singling out the importance of China as a major trading partner while indicating a reluctance to take a firm stance on security tensions in the Taiwan Strait. REUTERS

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Leaders agree to improve mutual sentiment by expanding people-to-people exchanges

South Korean President Lee Jae-myung has formally invited Chinese leader Xi Jinping to attend this year’s APEC summit in South Korea, as both leaders pledged to chart a new course in bilateral relations, the presidential office in Seoul said Tuesday.

Lee and Xi agreed on the need for close cooperation during their 30-minute first phone call, which began at 11:30 a.m. on Tuesday, six days after Lee’s inauguration on June 4, presidential spokesperson Kang Yu-jung said during a televised press briefing.

“The two leaders agreed to maintain close communication across various fields to forge new Korea–China relations, taking the inauguration of the new Korean administration as an opportunity,” Kang said.

The introductory phone call came at a critical juncture as this year holds particular significance for Seoul-Beijing ties, with expectations rising for Xi’s first visit to South Korea since July 2014, on the occasion of the Asia-Pacific Economic Cooperation summit.

South Korea will host the APEC summit in early November in the city of Gyeongju, North Gyeongsang Province, while China will host the summit next year.

“The two leaders also agreed on the need for close cooperation between Korea and China — this year’s and next year’s respective APEC hosts — to ensure the successful hosting of the APEC summit in Gyeongju,” Kang said.

“President Lee invited President Xi to the APEC summit in Gyeongju this November, expressing his hope for closer consultations with President Xi to further advance bilateral relations,” Kang added.

The phone call also touched upon China’s role in resolving the nuclear issue.

Kang explained: “Lee asked China to play a constructive role in achieving denuclearization and peace and stability on the Korean Peninsula.”

“In response, President Xi stated that peace and stability on the Korean Peninsula are in the common interest of both (South) Korea and China, and that China will make efforts to help resolve the issue and promote peace and stability on the peninsula,” Kang told the briefing.

Another key topic of discussion was improving Seoul–Beijing ties across the board, including addressing the strained public sentiment between the two countries.

Kang also underscored that the two leaders “pledged to work together to deliver tangible results in practical areas such as economic cooperation — outcomes that the people of both countries can genuinely experience.”

The two leaders “agreed to strengthen mutual communication and expand people-to-people and cultural exchanges to enhance friendly sentiment between their citizens,” Kang added.

Lee expressed his hopes for “pursuing active exchanges and cooperation across a wide range of fields — including the economy, security, culture, and people-to-people exchanges — on the basis of mutual benefit and equality,” according to Kang.

Kang further explained that the phone call was “conducted in a cordial and amicable atmosphere,” based on the commonality that both Lee and Xi began their political careers at the local level.

According to an announcement from the Chinese government, Xi called for “promoting the China–South Korea strategic cooperative partnership to a higher level” during the phone call, repeatedly emphasizing the importance of developing ties between Seoul and Beijing.

Xi also stressed the need to “deepen people-to-people exchanges to increase mutual understanding and consolidate the foundation of public support,” as well as to “strengthen exchanges at all levels and in all fields to enhance strategic mutual trust,” Beijing added.

China has implemented a visa-free policy for South Korean passport holders, effective from November of last year until the end of this year, to promote people-to-people exchanges. Under this policy, South Korean nationals entering China for business, tourism, family visits, or transit can stay without a visa for up to 15 days.

The sequence of Lee’s phone calls with the leaders of the US, China, and Japan has drawn close attention — particularly regarding whether he would speak with Xi or Ishiba first.

Xi is the third leader with whom Lee has held a phone call since his inauguration on June 4, which took place immediately after the June 3 snap election, with no transition period. Lee previously spoke for around 20 minutes with US President Donald Trump on June 6 and for 25 minutes with Japanese Prime Minister Shigeru Ishiba on Monday.

With Trump having confirmed his attendance at the G7 summit and Ishiba also expected to participate as Japan’s representative, Lee will attend the summit in Alberta, Canada, on June 16–17 as an observer, at the invitation of the Canadian hosts. This sets the stage for his first in-person interactions with both leaders.

South Korea’s presidential by-election, triggered by the impeachment of Yoon Suk-yeol over his short-lived effort to impose martial law in December, has elevated Democratic Party figurehead Lee Jae-myung to the Blue House. Known for his populist economic agenda and confrontational political style, Lee assumes the presidency at a delicate moment internationally – and his early foreign policy signals suggest a pragmatic, and potentially risky, shift in Seoul’s regional posture.

Lee’s remarks during the campaign reveal a worldview where foreign policy is guided less by doctrine or alliance norms, and more by transactional benefit. When asked how South Korea would respond to a potential conflict between China and Taiwan, Lee responded that the country should simply say “xie xie” – “thank you” – to both sides. The comment sparked backlash at home and abroad, yet it underscored Lee’s preference for ambiguity over alignment in one of the region’s most consequential flashpoints.

He was similarly blunt when asked about dealing with a second Trump administration. “I would even crawl between Trump’s legs,” he said, “if that’s what it takes to get a better deal”. The line was deliberately provocative – a theatrical way of signalling that he is willing to sideline diplomatic decorum to secure outcomes. Lee’s foreign policy instincts lean towards transactional realism: less about aligning with democratic values or defending multilateral norms, and more about maximising flexibility to serve South Korea’s immediate domestic interests.

That domestic imperative looms large. Lee campaigned on a platform of economic redistribution, welfare expansion, and debt relief – policies that require sustained economic growth and fiscal room. Given South Korea’s slowing economy and fractious political environment, closer economic ties with China may appear an expedient path. China remains South Korea’s largest trading partner, accounting for close to 20 per cent of its total exports in 2024.

Lee has expressed openness to re-engaging Pyongyang, in line with progressive precedent. But the context has shifted.

But Lee’s pragmatism introduces significant foreign policy risks. South Korea’s security remains tied to its alliance with the United States. The US–ROK alliance underpins a strategy of deterrence on the Korean Peninsula, facilitates joint military operations, and connects Seoul to a broader network of regional partnerships – including with Australia, Japan, and other Indo-Pacific democracies.

Lee’s apparent desire to hedge between Washington and Beijing may compromise this position. While previous progressive administrations, such as Moon Jae-in’s, also sought to manage this balance, they did so without casting doubt on the foundational nature of the alliance. Moon’s engagement with Beijing was tempered by clear alignment with the United States on issues such as missile defence and sanctions. Lee’s willingness to reframe South Korea’s posture as non-aligned – even rhetorically – could weaken trust among key partners.

Australia should take notice.

Canberra faces similar structural tensions: a deep economic relationship with China and a strategic reliance on the United States. But unlike Seoul’s emerging ambiguity, Australia has made firm commitments to the US-led order – through AUKUS, enhanced Quad engagement, and greater defence spending. If South Korea under Lee moves toward a more ambivalent posture, it may complicate Australia’s efforts to coordinate regional security initiatives. It could spell the end of speculation of South Korea participating in some fashion in either AUKUS or Quad initiatives.

The inauguration ceremony of Lee Jae-Myung as the 21th President of Republic of Korea (Republic of Korea Government)

North Korea presents another test. Lee has expressed openness to re-engaging Pyongyang, in line with progressive precedent. But the context has shifted. North Korea now enjoys closer ties with Russia, a more permissive environment from China, and continues to advance its missile program. Any engagement strategy that lacks close coordination with allies and partners risks being misread – and may embolden rather than deter.

Lee’s presidency is therefore not just a domestic political reset. It is a live test of how a middle power navigates great-power competition. His pragmatism may offer short-term economic benefits, but over time it risks eroding the trust and alignment that undergird South Korea’s regional standing.

For Australia, this calls for both vigilance and engagement. Bilateral channels with South Korean counterparts should be strengthened – especially on export controls, defence technology, and Indo-Pacific maritime cooperation. At the same time, Canberra must invest in multilateral frameworks that preserve cohesion even amid domestic leadership shifts.

Lee may believe that flexibility is South Korea’s greatest foreign policy asset. But history suggests that in times of strategic flux, clarity – not ambiguity – is what deters miscalculation and sustains alliances.