Some sources say these actions are China’s retaliation against South Korea for agreeing to the deployment of a missile defense system in cooperation with the United States, which is challenging China’s growing power in the Eastern Pacific. Others assume the ban is a protectionist measure against the overwhelming success of Korean content in China.
Regardless of the reason, a ban would hurt the financial interests of Korean companies. K-pop powerhouses like SM and YG have already seen their stock values decline sharply on the stock exchange.
“[A ban] would have a major impact on TV drama productions,” a Korean distributor told Variety, because pre-sale financing from Chinese money would dry up.
Meanwhile, if films co-produced by Korean companies are denied co-production status in China, they would be subjected to the country’s restrictive foreign film quota. But a ban is unlikely to be formally announced as the two nations signed a bilateral co-production treaty just two years ago.
Source: Variety by Sonia Kil