HKTDC Signs MOU with Korean Trade Promotion Agency

Margaret Fong, Executive Director, HKTDC (L), and Kim Jaehong, President and CEO, Korea Trade-Investment Promotion Agency, sign a Memorandum of Understanding on behalf of the two organisations, to promote economic cooperation and trade between Hong Kong and Korea.

The Hong Kong Trade Development Council (HKTDC) has signed a Memorandum of Understanding (MoU) with its counterpart in Korea, the Korea Trade-Investment Promotion Agency (KOTRA), to promote economic cooperation and trade between Hong Kong and the Republic of Korea.

The signing took place, ahead of the official opening of the HKTDC’s Seoul office on 21 November.

The MoU was signed in Hong Kong by Margaret Fong, Executive Director, HKTDC, and Kim Jaehong, President and CEO, KOTRA.

– Enhanced cooperation

The MOU aims to strengthen the two parties’ cooperation in promoting economic partnership and trade between Hong Kong and Korea. The sectors covered include creative industries, services industries, start-ups, technology, lifestyle products, food, toys, gifts and housewares.

Under the MoU, the HKTDC and KOTRA will exchange information on economic cooperation, trade facilitation, industry development and new business opportunities in both markets. The two parties will also help promote each other’s trade fairs.

– Strong business ties

Korea is Hong Kong’s sixth-largest trading partner and fifth-largest source of imports. In the first nine months of 2017, bilateral trade surged 26 per cent year-on-year to US$28.2 billion, while Hong Kong imports from Korea grew 32.3 per cent to US$22.9 billion. During the same period, the city’s total exports to the country increased 4.5 per cent to US$5.3 billion, making Korea the city’s 10th-largest export market. Major imports and exports between the two economies include semiconductors, electronic valves and tubes, as well as telecom equipment and parts.

In June 2017, 148 Korean companies operated regional headquarters, regional or local offices in Hong Kong, up nearly 10 per cent from a year ago. Korean companies in Hong Kong are involved in financial services, logistics, transportation and cosmetics, among other sectors.

Korea’s cumulative foreign direct investment in Hong Kong amounted to US$3.3 billion as of the end of 2015.

Hong Kong and Korea signed an Investment Promotion and Protection Agreement in 1997, and a Comprehensive Avoidance of Double Taxation Agreement in 2014.

In the last financial year ending March 2017, more than 16,000 buyers and over 840 exhibitors from Korea took part in HKTDC product and services fairs.

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