The economic muscle Beijing is employing to punish South Korea over the deployment of a U.S.-backed missile defense system could have a profound effect on the latter’s economy, say analysts. Its heavy reliance on exports to China leaves South Korea more exposed to boycotts of its goods and services than Taiwan and Japan – both of which have been similarly targeted in the past by unofficial ‘sanctions’ imposed by China. “South Korea’s economy over the last decade has really been geared towards selling to the Chinese consumer – everything from cosmetics to tourism to K-pop,” said Shaun Rein, Managing Director of China Market Research Group. One thing that makes the boycott against South Korea stand out is that it is a joint initiative involving both the government and the public. The boycotts against Japan and Taiwan were mostly started by the people, said Economist Song Qinghui. The U.S. military has begun installing the Terminal High-Altitude Area Defense (THAAD) system, designed to protect against threats from North Korea. The announcement has angered Beijing, because the ground-based radar designed to detect short- and medium-range ballistic missiles could also spy deep inside Chinese territory. A ban on the sale of Chinese travel packages could shave at least 20% off Korea’s GDP growth this year. In 2016, Chinese tourists to Korea represented 47% of total tourist arrivals and an estimated 64% of total tourism revenue, the South China Morning Post reports. The primary target of the boycott until now has been the Lotte Group, the firm that signed a land swap deal with the Korean government for the THAAD system to be set up on its land.