SEOUL -- South Korean companies are increasing their investments in China at a time when the two economic powers are moving to repair their relationship that was damaged by the deployment of a U.S. missile defense system on South Korean soil in March.

Seoul-based beauty care company Aekyung said that it set up a Chinese subsidiary in Shanghai last month, seeking to target young consumers with its cosmetics brands, which include AGE 20's and Luna. Before the launch, the company in October invited 42 Chinese internet personalities to its shopping mall in the northwestern city of Suwon for a promotional event.

"With the launch of [our] local subsidiary, we expect better sales in the Chinese market," the company said in a statement. "Our revenues in China are rising sharply, growing 42% in 2015 and 112% in 2016."

The announcement comes after Seoul and Beijing agreed in October to resolve their thorny defense issue sparked by the installation of the U.S.'s Terminal High Altitude Area Defense system in the southeastern rural village of Seongju. China has staunchly opposed the prescence of the anti-missile system, on concerns that its radar would allow the U.S. to monitor Chinese military bases and other operations.

President Moon Jae-in begins a four-day visit to China on Wednesday, which will include a summit with his Chinese counterpart Xi Jinping on Thursday. Both leaders are expected to discuss a wide range of issues, from North Korea's nuclear threats to the two countries' conflicts over THAAD.

Over 260 top business people from major South Korean conglomerates and companies will accompany Moon on his first visit to China as president. SK Group Chairman Chey Tae-won, Hanwha Group Chairman Kim Seung-youn, LG Group Vice Chairman Koo Bon-joon, Hyundai Motor Vice Chairman Chung Eui-sun and Samsung Electronics Vice Chairman Yoon Boo-keun are some of those participating.

Despite China's imposition of economic sanctions against South Korean companies since March, South Korea's exports to China managed to hit a record high of $14 billion in November, up 20.5% from a year ago. Semiconductors, machinery and petroleum products led the outbound goods, along with cosmetics and pharmaceutical products.

Orion, a confectionary subsidiary of Orion Holdings, said that its sales had recovered almost to the levels before the THAAD crisis. "We suffered from the THAAD issue about two months, but now our sales in China are recovering to [about 90% of the level] before the crisis," said Shin Hyun-mi, an Orion spokesperson.

China's sanctions against South Korea also hit the country's tourism industry which had relied on visitors from its neighbor. Hyundai Research Institute said that South Korea's tourism industry was estimated to have lost $6.5 billion over the five months from March to July following the Chinese authorities' ban on group tours to the country.

The Korea Tourism Organization says it needs more time to see a full recovery in Chinese tourists to the country. © Reuters

China partly lifted the ban this month, allowing travel agencies in Beijing and Shandong to manage group tours to South Korea, but the Korea Tourism Organization said it needed more time to see a full recovery.

The Bank of Korea, the country's central bank, estimates that the THAAD saga will push South Korea's gross national product down by 6.5 trillion won ($5.98 billion), or 0.4 percentage points, over 2017.

Cho Hong-joon, head of the China Team at South Korea's state tour agency, said that they had not noticed a big improvement yet as China was still banning cruise tours and charter flights between the two countries. "We expect the atmosphere to improve after President Moon's visit to China."

Nikkei staff writer Sotaro Suzuki in Seoul contributed to this report.