Blog

Visit to Seoul

Last week, I paid a three-day visit to Seoul, Korea, focusing on promoting Hong Kong's latest developments and opportunities to the local financial, trade, business, and innovation and technology (I&T) sectors. During my visit, I engaged in exchanges and discussions with local financial regulatory authorities, venture capital firms and asset management professionals. Over the past few years, representatives from Korean institutions had visited Hong Kong less frequently due to the impacts of the pandemic and geopolitical factors. This has resulted in a gap in their understanding of Hong Kong's current situation.

Since September last year, Hong Kong's financial market has shown strong performance with vibrant initial public offering (IPO) activities. This has captured the attention of Korea's financial sector. Their keen interest in investing in the financial markets of Hong Kong and the Chinese Mainland is driven by their optimism regarding Hong Kong's securities market, the need to diversify asset allocation risks, and confidence in the development and commercialisation potential of the I&T sector in the Greater China region. For instance, in the first five months of this year, the total trading volume in securities by Korean licensed institutions in Hong Kong exceeded HK$1.5 trillion, which is 2.8 times the total trading volume for all of last year. Moreover, Korean investment banks have been cornerstone investors in several IPOs in Hong Kong.

Last week, I paid a three-day visit to Seoul, Korea, focusing on promoting Hong Kong's latest developments and opportunities to local financial, trade, business, and innovation and technology sectors.

While in Seoul, I attended the "Korea–Hong Kong Business Luncheon" where I took a group photo with the Deputy Mayor for Economy of Seoul, Mr Joo Yong-tae (second right), the Director of International Trade Division of the Korea Chamber of Commerce and Industry, Mr Kevin Lee (first left), and the Principal Hong Kong Economic and Trade Representative (Tokyo), Miss Winsome Au.

Attending and speaking at the "Hong Kong – Korea Capital Markets Conference" in Seoul, Korea.

During the "Hong Kong – Korea Capital Markets Conference", I took a group photo with other keynote speakers, including the Managing Director and Head of Markets of the Hong Kong Exchanges and Clearing Limited, Mr Gregory Yu (first left); the Chairman of the Korea Financial Investment Association, Mr Seo Yoo-seok (second left); and the CEO of CSOP Asset Management Limited, Ms Ding Chen.

The rapid advancements in the technology sector in China, along with our country's support for tech companies to accelerate their listings in Hong Kong, have fuelled interest among Korean investors in increasing their asset allocation to Hong Kong and Mainland enterprises. Local venture capital and private equity funds are also increasingly interested in investing in Hong Kong; however, their understanding of the I&T developments, investment opportunities in Hong Kong and the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), as well as the latest trends in the securities market, remains insufficient.

I have repeatedly emphasised that innovation drives growth; indeed, Hong Kong's financial product innovation has attracted Korean capital to the Hong Kong stock market. One of the topics discussed during my visit was a recently listed leveraged and inverse product in Hong Kong that tracks a major Korean technology company. Being the first product of its kind globally, it means that Korean investors wishing to trade related derivatives can do so only in Hong Kong. The product innovation capabilities of Hong Kong's market have been recognised by the Korean financial community, which is now exploring how to apply similar concepts to other suitable companies.

The developments of the digital asset sector in Hong Kong, as well as the upcoming implementation of the Stablecoins Ordinance, are of significant interest to both the trade and regulatory authorities in Korea. We had in-depth exchanges on regulatory experiences and strategies for industry development, as well as the potential applications of stablecoins.

Meeting with the Chairman of the Financial Services Commission of Korea, Mr Kim Byung-hwan.

Meeting with the Governor of the Bank of Korea, the country's central bank, Mr Rhee Chang-yong.

Meeting with the President and CEO of the Korea Investment Corporation, Mr Park Il-young (second left).

During my visit, I also underscored that the long-term implementation of the "one country, two systems" arrangement in Hong Kong is a solemn commitment from the country. The Korean business community values Hong Kong's advantages, such as our international character, free market principles, and in particular the Linked Exchange Rate System, the free flow of capital, as well as our common law system.

At the same time, the rapid development of tech companies in the Mainland has heightened the urgency for Korean enterprises to enhance their competitiveness and strengthen mutually beneficial co-operation, although geopolitical tensions have also deepened their concerns. Market competition is inevitable and often drives progress. Collaboration can foster shared growth and advancement. This visit has reinforced our understanding of the necessity for open communication and mutual understanding, which form the basis for trust and the starting point for co-operation.

Meeting with representatives from the Korea Venture Capital Association.

Meeting with representatives from various private equity funds.

Throughout a series of exchanges, the Korean business community expressed strong interest in Hong Kong's role as a "super connector" and recognised that there are opportunities for collaboration in multiple fields. For instance, the two economies can enhance financial market connectivity and co-operate on financial innovation. The recent robust development of exchange-traded funds (ETFs) in Hong Kong represents an immediate opportunity for collaboration. Cross-listing more products between our markets—such as listing ETFs tracking the Korean stock market in Hong Kong or vice versa — can enhance market connectivity and liquidity, while broadening the investor base. In fact, Hong Kong is a market that attracts capital from both the Chinese Mainland and the rest of the world. Mechanisms promoting financial market connectivity between Hong Kong and Korea can draw more global investment into companies listed in both markets, creating new asset allocation options for investors.

Beyond finance, fostering collaboration in I&T and strengthening development of the industries were also key themes of my visit. While in Korea, I visited local a technology park and a number of I&T companies.

Visiting the Digital Media City in Seoul, where I watched a demonstration on the application of extended reality technology in urban development.

Visiting NAVER, an innovation and technology enterprise, where I watched a demonstration on the application of artificial intelligence and robotics.

While in Seoul, I called on the Chinese Ambassador to the Republic of Korea, Mr Dai Bing.

As both a "super connector" and a "super-value-adder", Hong Kong boasts world-class universities and exceptional research capabilities. With the thriving I&T and advanced manufacturing ecosystems of the GBA, we can facilitate collaboration among tech companies, particularly those engaged in artificial intelligence, biomedicine, smart cities and green technology. By connecting Korean enterprises with Hong Kong and the GBA, we can help innovative ideas and cutting-edge technologies find more application scenarios and better commercialisation opportunities. We welcome Korean enterprises and universities to explore more collaborative projects with Hong Kong and leverage the advantages of the GBA to create new opportunities together.

In the current changing international landscape, regional co-operation is becoming increasingly important. Building new partnerships, exploring new markets, attracting new capital, and pursuing mutually beneficial development will enhance the resilience and competitiveness of economies. Looking ahead, we will continue to promote multifaceted interactions between Hong Kong and other Asian economies by hosting more exchange activities in such areas as finance, I&T, trade, arts and culture, and education. This will broaden and deepen mutual understanding, and lay a more solid foundation for friendship and collaboration.

July 13, 2025