Hong Kong can be the best hub for Korean products to enter the ASEAN region, beyond the GBA (Greater Bay Area) or mainland China.
Paul Chan, the financial secretary of Hong Kong (equivalent to the Minister of Finance), noted the advantages of Korean corporations entering Hong Kong during a 'Korea-Hong Kong business luncheon' held in Seoul on the 9th. The event was co-hosted by the Hong Kong Economic and Trade Office and the Korea Chamber of Commerce and Industry.
He highlighted the geographical advantages of Hong Kong. Chan said, "Hong Kong serves as a gateway to the GBA," adding that "the duty-free port status, swift and efficient customs procedures, and excellent logistics consolidation provide the optimal path for various Korean products to quickly enter high-growth markets."
The GBA refers to the massive economic zone connecting nine major cities in Guangdong Province, such as Guangzhou and Shenzhen, along with Hong Kong and Macau, known as the Greater Bay Area. The GBA has a population of approximately 87 million, with a per capita Gross Domestic Product (GDP) of $23,000 (about 31.6 million won). Hong Kong has excellent connectivity with GBA cities, reachable by high-speed rail in just 15 minutes to Shenzhen.
Chan described the GBA as an economic zone that combines the financial capabilities of New York with the innovative energy of Silicon Valley. He mentioned that the science and technology cluster of Shenzhen, Hong Kong, and Guangzhou ranked second in the 2024 scientific and technological cluster ranking determined by the World Intellectual Property Organization (WIPO) based on patent applications and scientific papers, evaluating the GBA as a "cradle of innovation."
He reported that the rapid growth of the Hong Kong economy post-COVID-19 pandemic has caught the attention of global investors. In the first quarter of this year (January to March), Hong Kong's real GDP increased by 3.1% compared to the previous year, while the Hong Kong stock market surged 20% this year, driven by large initial public offerings (IPOs), including battery manufacturer CATL. This year, the funds attracted by the Hong Kong stock market reach $16 billion (about 22 trillion won).
Korean corporations' interest in Hong Kong is already high. As of February, investment in the Hong Kong stock market from Korea has reached the highest level in the past three years, according to Chan. He said, "Many asset management firms from Europe and the United States are already increasing their hiring and expanding office spaces in Hong Kong," adding, "Hong Kong will be a significant opportunity for Korean private banking and asset management firms."