At the end of a sluggish year, South Korea is gradually coming to anticipate the recovery of its consumer goods stocks, placing its hopes on the latest trilateral talk with China and Japan.

The key point of interest comes down to whether Seoul will break free of the consequences of economic retaliatory measures taken by Beijing in response to the deployment of an advanced US missile defense system in 2016.

On Tuesday, the leaders of the three Northeast Asian states reaffirmed their shared goals of fostering free trade and integrating economic cooperation in the region. 

The latest trilateral meeting, a one-time event, is seen as paving the way to meaningful progress in the regional relationship.

Should tangible progress be made from the trilateral talks, “prices of listed firms with consumer goods businesses related to China, such as cosmetics, traveling and clothes, will gain momentum,” according to SK Securities.

The cosmetics industry was seen as likely to feel the most immediate impact.

Shares of Amorepacific on Tuesday closed at 198,000 won ($170.50), up nearly 0.76 percent from the previous session’s close.

Other cosmetic sellers such as Clio, LG Household & Healthcare, Yonwoo and Able C&C saw their stock prices jump this week, with the increases ranging from 2 to 5 percent.

The country’s duty-free businesses are also expected to benefit from the increasing number of inbound Chinese visitors.

The estimated number of Chinese visitors this year is expected to expand more than 25 percent on-year to reach 6 million by year-end, according to Shinhan Investment in a report.

Some, however, maintained a conservative approach, citing external volatility between Seoul and Beijing.

“There are still ongoing issues such as the Trump administration’s Indo-Pacific strategy and the tariff dispute between the US and China,” Yuanta Securities said.

“It is premature to raise hopes for the termination of (China’s) banning law (against Korea). For now, we need to keep watch on the market.”

By Jie Ye-eun (yeeun@heraldcorp.com)