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The Principal Representative of the Hong Kong Economic and Trade Office with coverage of Korea and Japan, Mrs Jennie Chok, today (April 18) addressed more than 150 people from political, business and media circles in Busan, South Korea, updating them on Hong Kong's economy and the expanding scope of business opportunities for foreign investors available in Hong Kong.
Mrs Chok was speaking at the luncheon seminar on "Hong Kong ― New Opportunities; New Attractions" organised by the Hong Kong Economic and Trade Office.
Mrs Chok said trade and investment ties between Korea and Hong Kong were close and well-established.
"The bilateral trade of goods and services amounted to around US$22 billion (more than 20.5 trillion won) last year, representing a healthy annual growth of 12.7% from 2002 to 2006," she said.
On Hong Kong's economy, Mrs Chok told the Busan audience that since mid-2004, Hong Kong had been enjoying sustained and broad-based recovery, with GDP growing by 7.3% in 2005 and 6.8% last year.
"Foreign investment has been particularly strong, with inflow of FDI to Hong Kong in 2005 amounting to nearly US$35.9 billion.
"The growth momentum continued in 2006. During the first three quarters of last year, Hong Kong received FDI inflows of US$29.6 billion, or 17 % higher than the same period of 2005," said Mrs Chok.
According to Korean Ministry of Finance and Economy, FDI inflow from South Korea to Hong Kong amounted to US$1.1 billion last year, representing an impressive 130% increase over 2005.
"There are more than 3,840 companies from all over the world that have either regional headquarters or regional offices in Hong Kong. Among them, around 80 are Korean companies, whose businesses cover various sectors such as trading, electronics and logistics," she said.
Hong Kong's increasing economic integration with Mainland China and the latter's spectacular economic growth have opened up immense business opportunities for foreign investors.
"The increasing depth and breadth of our economic co-operation with China can best be demonstrated by the Closer Economic Partnership Arrangement (CEPA) signed between our two economies," Mrs Chok said.
Under CEPA, all products of Hong Kong origin now enjoy tariff-free access to the Mainland Chinese market; and Hong Kong service suppliers in 27 service areas, including retail/distribution, logistics, construction, and audio-visual, etc., enjoy preferential treatment in the Mainland market.
She stressed that foreign companies setting up production or based in Hong Kong could also benefit from CEPA.
On financial services, Mrs Chok said Hong Kong had become an important platform for China to expand into the international market, saying that last year the massive initial public offerings (IPOs) of Mainland enterprises had helped Hong Kong overtake New York as the world's second-largest IPO market.
"Hong Kong, both as the capital market gateway to the Mainland and the premier capital formation centre for Mainland enterprises, is offering yet more opportunities to its investors," she said.
Mrs Chok said the horizon of business opportunities in Hong Kong was still expanding, as Mainland China had emerged as one of the fastest growing consumer markets in the world and a huge source of tourism for Hong Kong.
At the luncheon seminar, Representative of Seoul Office, Hong Kong Trade Development Council, Mr Chris Maeng, and Regional Director, North Asia of the Hong Kong Tourism Board, Mr Ken Kano, also spoke respectively on specific partnership opportunities open to Korean companies, and the latest tourist attractions and tourism campaigns in Hong Kong.
Ends/Wednesday, April 18, 2007
Issued at HKT 17:38
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