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Stocks

China restrictions clobber South Korean tourism stocks

Member of boy band among those burned as investors fret over missile defense

Downtown Seoul is seeing fewer Chinese tourists as China and South Korea bicker over a U.S. missile defense system. (Kyodo)

HONG KONG -- South Korea is in political turmoil, with President Park Geun-hye thrown out of office over corruption allegations. Now, a dark shadow looms over the country's stock market as well.

After China placed restrictions on travel to South Korea on March 3, the market went wild. Tourism-related issues imploded. AmorePacific Group, a major cosmetics company, dived nearly 13%. Peer LG Household & Health Care lost over 8%. Hotel Shilla, which runs tax-free shops for tourists, plunged more than 13%. Investors offloaded shares on fears that sales to Chinese tourists will slide.

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