As previously promised, South Korea has lodged a complaint with the World Trade Organization citing China’s arbitrary boycott of South Korean goods and tourism services.
Ignoring China protests, South Korea began deployment of the US made THAAD anti-missile system to counter the threat of North Korea.
In response China imposed restrictions on China travel companies sending customers to South Korea which has hit its tourism industry hard.
The unofficial boycott could cost South Korea up to $10 billion in lost tourism revenue, analysts say.
During a parliamentary session, speaker Joo Hyung-hwan said China has breached two trade clauses, which relate to equal treatment of all companies from a single country and not penalising imported goods over local products.
Korean conglomerate Lotte Group has been hit the hardest so far and has been forced to close about 90% of its stores in China.
Lotte Group seems to have been singled out as it provided land to the Seoul government for the deployment of the THAAD system.
Beyond a state orchestrated boycott, Chinese citizens themselves have chosen not to contribute to the South Korean economy.
More than 3,000 cruise passengers refused to come ashore during a recent port call in Jeju, while several cruise lines have rerouted sailings to Japan instead.
