South Korea will temporarily allow visa-free entry for Chinese tour groups from September 29 until June 2026, aiming to boost inbound tourism ahead of the Asia-Pacific summit, the government announced on Wednesday (Aug 6). This policy was initially revealed in March following China’s November decision to grant visa exemptions to South Koreans and travelers from other nations. The move also reflects hopes for better relations between China and South Korea under the leadership of new liberal President Lee Jae-myung.

Timed to coincide with China’s early October holiday season, the initiative is expected to stimulate South Korea's economy as foreign tourist numbers rebound, according to the tourism ministry, which discussed strategies to revitalize tourism ahead of the Asia-Pacific summit. South Korea is set to host the Asia-Pacific Economic Cooperation (APEC) summit on October 31 and November 1 in Gyeongju, where Chinese President Xi Jinping and US President Donald Trump might engage in separate discussions.

In response to the announcement, stocks of South Korean department stores, casinos, hotels, and cosmetic companies surged, driven by optimism over increased Chinese consumer spending. Hyundai Department Store shares rose by 7.1%, Hotel Shilla gained 4.8%, Paradise casino operator increased by 2.9%, and Hankook Cosmetics soared by 9.9%.