Shoppers pass by shelves filled with Korean instant noodle products at a retail outlet in Seoul, May 19. In the early 2000s, Korean food and consumer products gained popularity in China alongside the rise of K-dramas and Korean culture. Yonhap

When 29-year-old Claire Shi from Beijing was young, her family used to huddle together on the couch and watch Korean dramas broadcast on Chinese TV. It was the early 2000s, and K-dramas and hallyu, the Korean wave, were all the rage.

Kimchi was coveted as families watched "Dae Jang Geum," or "Jewel in the Palace," a historical drama first aired in 2003 about a young woman who rises to the position of the king's head chef thanks to her extraordinary cooking skills, and Korean ramen products were bought in bulk as K-drama fans wanted to experience the same flavors they saw actors consuming on screen.

"I had to buy the ramen online when they weren't sold in stores in the beginning," Shi said. "I also bought Korean jjajangmyeon (black bean noodles), and even the green owl plush doll from the 'Heirs.'"

In the early 2000s, the Korean wave swept through China, captivating millions with its addictive dramas and catchy K-pop music. This cultural phenomenon sparked a widespread admiration for all things Korean, leading to an explosion in the popularity of Korean products – from skincare and cosmetics to fashion and food.

However, the fervor cooled in 2016 when the deployment of the Terminal High Altitude Area Defense (THAAD) missile defense system in Korea provoked a strong reaction from China, and subsequently led to a series of unofficial economic and cultural sanctions that restricted Korean businesses, entertainment, and cultural exports in the country.

These measures included limiting the visibility and sales of Korean products, banning Korean entertainment content, and discouraging Chinese tourism to Korea.

"In the past, we often saw people eating large pots of instant noodles in Korean dramas, so Korean instant noodles were a big hit in China," said Victoria Wang, who runs YiJiaRen, a Shanghai headquartered snack food company with approximately 2,300 stores nationwide.

"Now, the general public is not exposed to Korean entertainment as much."

Captured images from the drama "Dae Jang Geum," or "Jewel in the Palace," left, aired in 2003, and the drama "My Name is Kim Sam-soon," which aired in 2005. Both dramas are very well-known in China. Courtesy of MBC

The ban on Korean culture initially dampened Chinese consumers' appetite for some Korean products, but its long-term impact is more complex and the reason behind the dramatically altered landscape is multifaceted, experts said.

"The shift in purchasing behavior is influenced not only by regulations on Korean goods but also by the rapid growth of China's domestic industries," said Huh Eun-jin, a visiting professor in international studies at Yonsei University.

"By 2016, China had transitioned its economic growth model from export-oriented to domestic-driven under the Xi Jinping administration. During this period, patriotic consumption surged, driven not only by the Korean culture ban but also by the Chinese government's efforts to fill the void left by the ban, improve the quality of domestic products, and promote local consumption. As China's local brands rise, the recognition of Korean brands has comparatively declined, and the preference for homegrown products has increased."

The rise of domestic brands has led to a clear increase in preference for local products among the broader Chinese consumer base, but on the other hand, the ban has not completely altered the preferences of certain consumers who still hold a strong affinity for Korean culture and its products.

Shi said her love for K-culture has not been affected by the measures.

"I think enthusiasts may not be greatly affected because there are many avenues for them to access [hallyu] content," she said.

"However, the restrictions on Korean media serve as a barometer. For instance, if Korean dramas are no longer broadcast on TV or available on streaming platforms like iQiyi or Youku, my family members might stop watching them altogether. It could also lead to a reluctance to consume Korean products or foods, influenced by these restrictions."

Korea's exports to China fell by nearly 20 percent in 2023 compared to the previous year, according to official statistics. This brought the share of exports to China down to 19.7 percent of Korea's total outbound shipments, amounting to $124.8 billion, and falling below 20 percent for the first time in 20 years.

Korean imports from China also dropped 8 percent year-on-year to $142.8 billion.

That contributed to an $18 billion trade deficit with China, Korea's first trade deficit with the country in over 31 years.

Chinese tourists shop at Shilla Duty Free in downtown Seoul in this August 2023 photo. Seoul's deployment of the Terminal High Altitude Area Defense missile defense system in 2016 triggered China, and cooled consumers' fervor. Courtesy of Shilla Duty Free

The sluggish exports of Korean products to China, aside from areas experiencing boycotts, are less a result of decreased favorability toward Korea, and more to the increasing preference among Chinese consumers for domestic products, the advancement of Chinese merchandise into higher-end markets, and policy sanctions against Korean goods, Huh said.

The days are gone when many fans would purchase electronic products endorsed by Korean dramas or hallyu stars. Now, in terms of cost-effectiveness, Chinese domestic products are rapidly replacing Korean goods, especially for electronics.

Samsung and LG, two major Korean electronics giants, decided to exit the Chinese market one after another in 2019, amid increasing competition from local Chinese brands, shifting consumer preferences toward domestic products and geopolitical tensions impacting business operations.

Without the THAAD deployment, Korean brands might have had more time to gradually respond, but the onset of a market crisis was inevitable, said Han Dong-gyun, a professor at Hannam University who specializes in Chinese business and international trade.

"With the prolonged enforcement of the restrictions on Korean products, the government-led measures could potentially evolve into an anti-Korean sentiment in the public, similar to Japan's precedent," he said.

"However, in the current context of China, the likelihood of government-led restrictions morphing into widespread anti-Korean sentiment is low. China officially denies any formal Korean restrictions and has not pursued a government-led anti-Korean agenda to date," he said.

"Thus far, China has not relinquished its attraction to Korean cultural content, which Korea should capitalize on," he added.

Just as Korean dramas rely on China, the world's top television market, China also depends on Korea for its top-tier drama planning and production capabilities, Han pointed out, adding that he believes the dual nature of relations between the Chinese government and industry offers a new hope for hallyu.

"While it is true that advertising and marketing have decreased, they have had only a minimal impact on brand awareness. Even amid diplomatic confrontations with China, it remains necessary to continue engaging with China and actively maintain relationships," he said.

"Strategic plans to enter the Chinese market in various ways should be continuously developed."

Luna Sun is an economy reporter with the South China Morning Post. She is currently based in Seoul, reporting for both The Korea Times and the South China Morning Post via an exchange program.