Speech by FS at Korea-Hong Kong Business Luncheon (English only) (with photos/video)
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Mr Joo Yong-tae (Deputy Mayor for Economy, Seoul), Mr Kevin Lee (Director of the International Trade Division of the Korea Chamber of Commerce and Industry), distinguished guests, ladies and gentlemen,
Annyeonghaseyo. Good afternoon. It is both a pleasure and honour to be here with you today in Seoul.
Let me begin by extending my warmest greetings and heartfelt appreciation to the Korea Chamber of Commerce and Industry and our ETO (Economic and Trade Office) colleagues for organising this luncheon.
Hong Kong: good for business
Allow me to start by offering a brief snapshot of where Hong Kong stands today.
Hong Kong has been back on a path of growth following the global challenges of the pandemic. In 2024, we recorded a GDP growth of 2.5 per cent. This year, despite continued global uncertainties from tariff war to geopolitical tensions, our economy recorded a 3.1 per cent growth in the first quarter. Our merchandise exports continued to register strong double-digit growth.
Foreign businesses continue to cast a vote of confidence in our city. In 2024, the number of overseas and Mainland companies operating in Hong Kong reached an all-time high at nearly 10 000. American and European companies rose by around 10 per cent, while Korean companies rose by 9 per cent year on year.
Hong Kong continues to shine in international rankings. We are among the world’s top three global financial centres. The latest IMD (International Institute for Management Development) World Competitiveness Ranking places us as the third most competitive economy worldwide. Last October, the Fraser Institute reaffirmed our position as the world’s freest economy. These accolades are no coincidence. They are the result of persistent hard work to drive our competitiveness forward, backed by transparent, consistent and predictable policies, market openness and global connectivity.
A critical foundation of our success is a stable and secure environment. This year marks the fifth anniversary of the implementation of the Hong Kong National Security Law. It restores law and order in Hong Kong and provides confidence to the international business community. Indeed, a survey by the American Chamber of Commerce (in Hong Kong) in January this year showed that (more than) 80 per cent of its members expressed confidence in Hong Kong’s rule of law. And 70 per cent reported that the National Security Law had no impact on their business operations.
Under the "one country, two systems" framework, Hong Kong continues to be an open, diverse and international city. We are a free port, uphold a freely convertible currency pegged to the US dollar, ensure the free flow of capital, goods, information and talent, and practise the common law system.
President Xi Jinping and the Central Government of China have made clear that the "one country, two systems" framework is here to stay for the long term.
Investor confidence is reflected in hard data. Our stock market, for example, rose by 18 per cent last year, and has gained another 20 per cent this year. Initial public offerings (IPOs) on the Hong Kong Stock Exchange have raised about US$16 billion so far this year, making Hong Kong the top IPO venue globally to date. The total bank deposits grew by 7 per cent last year and another 7 per cent this year, now exceeding US$2.3 trillion, six times our GDP.
The Greater Bay Area
Meanwhile, Hong Kong is the international gateway to the Guangdong-Hong Kong-Macao Greater Bay Area, or GBA, which is an economic powerhouse with 87 million people and a combined GDP of US$2 trillion. With a per capita GDP of US$23,000, or US$40,000 on a purchasing power parity basis, the GBA is not just a manufacturing base, but also a sophisticated, high-growth consumer market.
The region is deeply interconnected. High-speed rail puts us just 15 minutes from Shenzhen and 45 minutes from Guangzhou. With seven international airports and a combined annual passenger throughput of over 200 million, the GBA sits within a five-hour flight radius of half the world’s population. Hong Kong International Airport, the world’s busiest cargo airport, now operates with a third runway and is gearing up to handle 120 million passengers and 10 million tonnes of cargo annually by 2035.
The GBA is also a cradle of innovation. According to the World Intellectual Property Organization, the Shenzhen-Hong Kong-Guangzhou science and technology cluster ranks second globally in innovation, and has done so for five consecutive years. Hong Kong excels in basic research, anchored by five universities ranked among the world's top 100. Three of them are in the global top 20 for data science and AI; our two medical schools are ranked among the top 40. Meanwhile, Shenzhen and Guangzhou lead in commercialisation and advanced manufacturing. Together, the GBA is like fusing the financial power of New York with the innovation energy of Silicon Valley.
Opportunities for Korean businesses
So, what does this mean for Korean businesses?
First, Hong Kong’s financial markets offer unparalleled connectivity and liquidity. We serve as a two-way platform, connecting international capital with Mainland markets and vice versa. Through our Connect Schemes, including Stock Connect, Bond Connect, and ETF (Exchange-traded Fund) Connect, and more, Mainland investors can access Hong Kong’s markets, while global investors can access the Mainland through Hong Kong.
The recent surge in our stock market reflects two important trends. First, the rebalancing act of international investors to diversify risks out of global economic uncertainty, particularly in the US; and second, optimism about China's technology prowess demonstrated by DeepSeek and others. Korean investors have already taken note. And they are apt in taking actions. In February this year, we saw the highest level of Korean investment into our stock market in over three years.
Beyond the stock market, asset and wealth management is another area where we are seeing rapid growth. Hong Kong now manages over US$4 trillion in assets. With a growing ecosystem of related financial services, we are on track to become the world’s largest cross-border wealth management hub by 2028. For Korean firms in private banking and asset management, the opportunities are significant. Indeed, many American and European asset and wealth managers have been expanding their hiring and office accommodation in the city.
Hong Kong also serves as a powerful springboard for Korean goods, not just into the GBA or the Chinese Mainland, but across the entire ASEAN (Association of Southeast Asian Nations) region. As a duty-free port with seamless customs clearance and unmatched connectivity, Hong Kong offers Korean exporters a fast, cost-effective and reliable route to high-growth markets. From electronics and cosmetics to food products and fashion, Hong Kong is your launchpad.
In innovation and technology, Hong Kong is making strategic and forward-looking moves. We are placing particular emphasis on the development of key sectors such as artificial intelligence and biotech. In addition to our world-class research capabilities, Hong Kong is where Mainland and international data converge. This is a distinct competitive advantage for data-intensive industries.
Our close collaboration with other cities in the GBA is further accelerating this momentum. Along our boundary with neighbouring Shenzhen, we are developing a joint innovation and technology park, where we are piloting innovative policies to facilitate the seamless flow of data, talent, capital and even biosamples. We have also established joint clinical trial centres to expedite drug development and streamline cross-boundary regulatory approvals. For Korean tech and pharmaceutical firms seeking expansion and collaboration opportunities, Hong Kong is your ideal location.
The pleasures of life
Beyond business, Hong Kong is a city alive with culture, diversity, and global connectivity. We are a true melting pot of East and West. Korean culture, from K-pop to kimchi, has found a warm and enthusiastic following in Hong Kong. And we are glad that more and more Korean visitors are coming to our city to see for themselves our vibrancy. In the first half of this year, Hong Kong welcomes more than half a million of Korean visitors, a 25 per cent increase year on year.
The pleasures of life are part of our fabric. With more than 200 Michelin-recognised restaurants, hiking trails minutes from the city, and a coastline that rivals the best in the region, Hong Kong offers not only opportunity, but quality of life. Above all, Hong Kong remains one of the safest cities in the world, a place you can walk freely, day or night.
And we are just getting started. The newly opened Kai Tak Sports Park offers a world-class, multipurpose venue for sport and entertainment events. In January next year, we’re excited to welcome BLACKPINK to our stage. And who knows, NewJeans and aespa may not be far behind!
Ladies and gentlemen, I hope I've been able to offer you a fresh perspective on Hong Kong, not just as a financial centre or trade hub, but as a dynamic, welcoming city filled with opportunity, energy and creativity. A city where Korean businesses, investors and talents can thrive.
If I may, let me now share a short video that captures the vibrancy, openness and possibilities of Hong Kong today.
That is Hong Kong - dynamic and welcoming. A city that means business, and a city that celebrates life. We look forward to welcoming you soon, to Hong Kong.
Kamsahamnida. Thank you very much.
Ends/Wednesday, July 9, 2025
Issued at HKT 14:08
Issued at HKT 14:08
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