Chinese Investors Pour Money into Seoul Ahead of Visa-Free Entry

A recent TikTok video features a robust Chinese man in his 40s explaining a construction site in the heart of Myeongdong, Seoul, which spans 1,500 square meters (approximately 450 pyeong). He revealed that the project, which involves an investment of several billion yuan (hundreds of billions of won), will include a Chinese restaurant, bars, karaoke rooms, and traditional Chinese outdoor pavilions. As he gestured around the site, he pointed out areas designated for a chicken dish corner and a seafood restaurant, stating, 'We will build eight Chinese-style shops on this floor, especially making the restaurant beautiful in the traditional Hui (徽派) or Su (苏派) architectural styles.'

In March, the South Korean government announced a temporary visa-free entry for Chinese group tourists (游客, yóukè) from the third quarter of 2025 until the end of the year. This announcement has attracted significant investment from Chinese investors eager to capitalize on popular shopping districts like Myeongdong. Following the Chinese government's decision last November to allow short-term visa-free entry for South Koreans, expectations for the complete lifting of the Korean Wave ban (限韩令, Hán Hán Lìng) have spurred active investments from Chinese duty-free shops, travel agencies, and entertainment companies in South Korea.

The influx of 'China money' into Seoul's urban areas, particularly Myeongdong, is also attributed to the easing of political turmoil following the emergency martial law declared last December. According to the South China Morning Post (SCMP), bookings for trips to South Korea by Chinese tourists increased by approximately 24% from April to June compared to the previous December to February period. The report noted that Chinese tourists now view South Korea as a safe travel destination with restored political stability.

Chinese duty-free and travel industries, along with entertainment sectors, are increasingly entering the South Korean market. The China Duty Free Group (CDFG) and its parent company, China Tourism Group (CTG), are currently discussing collaboration with Shilla Duty Free and Lotte Duty Free to target the group tourist market, which accounts for 60-70% of their revenue. Tencent Music, now the second-largest shareholder of SM Entertainment, has announced plans to collaborate with SM to produce idol groups in China.

Chinese investors are also making strides in the medical tourism visa sector. The Korea Tourism Organization's data lab reported that foreign medical spending reached 714.5 billion won from January to May, a 75% increase from the same period last year, largely driven by an uptick in Chinese patients seeking skin and cosmetic treatments.

In real estate, Chinese buyers are focusing on properties in central Seoul. Data from the court's registration information platform indicates that foreign real estate transactions rose from 833 cases in January to 1,238 in April, marking a nearly 49% increase. Notably, 66.9% of these transactions (2,791 cases) were made by Chinese buyers. Real estate experts noted that Chinese investors are pooling resources to purchase properties, sharing profits upon sale in a trend referred to as 'real estate shopping.'

In response to the surge in Chinese real estate acquisitions, the government and local authorities are considering countermeasures. The Seoul city government announced last month the implementation of a monitoring system that includes verifying funding plans for foreign buyers and checking for actual residency. Additionally, a proposed amendment to the real estate transaction reporting law has been introduced, requiring foreign buyers to obtain permission from local mayors or district heads before purchasing land in speculative areas.

The man in the TikTok video, who expressed his ambition to create a Chinese-style dining area in Myeongdong, is Wang Mo (왕모), 47, who previously operated a Chinese restaurant called Dongbangmyeongju in Songpa District, Seoul. Reports indicate that Wang's wife and others have opened Chinese hot pot restaurants in Myeongdong over the past two to three years. The individuals accompanying Wang in the video are identified as representatives from the Guizhou (贵州) and Fujian (福建) Chambers of Commerce, organizations that assist local governments and businesses in expanding overseas.