Check-in counters for flights to China are crowded at Incheon Internaional Airport, Nov. 8, when China's visa-free policy for Korean tourists took effect. Yonhap

Travel companies see their target price going upward on the stock market, driven by China's unprecedented visa-free policy to attract Korean tourists.

Hana Securities raised its target price for Modetour, a major travel agency on the secondary bourse Kosdaq, to 13,500 won ($9.66) this week, while suggesting a buy opinion.

"Modetour will directly benefit from China's new visa rule," the brokerage house said, referring to Beijing's announcement on Nov. 8 to allow Korean nationals to enter China for tourism, business, family visits or transit for up to 15 days without a visa.

The visa exemption took effect for the first time after more than 30 years of diplomatic relations between Korea and China.

The new policy will run through Dec. 31, 2025.

Hana Securities said that Korean tourist arrivals to China will pick up pace fast from the first quarter of 2025, noting "It will take time for travel companies to come up with packages."

Daishin Securities also suggested a buy opinion for Hana Tour, the country's largest travel company on the benchmark KOSPI, and adjusted the firm's target price upward to 75,000 won.

"The company is anticipated to grow noticeably in terms of 2025 operating profit, as it is geared toward introducing a wide range of tour packages to China," Daishin Securities noted in a report.

The securities firm accordingly hiked its outlook on Hana Tour's operating profit for next year by 41 percent to 71.6 billion won.

Meanwhile, some industry sources deemed that the market should not be "overly optimistic" about the impact of China's visa-free policy on Korean tourism.

The sources pointed out that a Korean traveler was denied entry into China on Nov. 15, as they argued that the Chinese authorities can "be picky at any time and such policy can affect travel demand."