Korean firms reliant on China tourism hit hard by yuan woes

Hong Kong

SOUTH Korean companies reliant on Chinese demand are turning from the stars of the stock market to the also-rans after the yuan's devaluation.

Shares of AmorePacific Corp, a cosmetics company that counts China as its second-biggest market, had more than doubled in the 12 months before the Chinese currency tumbled on Aug 11. Hotel Shilla Co, which had been benefiting from an influx of mainland tourists, had rallied 20 per cent. Both companies had lost 11 per cent since the devaluation through Tuesday, more than five times the 1.6 per cent loss of the MSCI Korea Index.