South Korea

Bilateral trade relations with South Korea and Hong Kong:
Hong Kong and South Korea enjoy a close trading relationship. Bilateral trade between Hong Kong and South Korea increased 0.5% from HK$171.5 billion in 2006 to HK$172.3 billion in 2007. In 2007, South Korea was Hong Kong's 6th largest trading partner, 11th largest market for domestic exports and 7th largest market for re-exports, and 6th largest source of imports.

Hong Kong is also an important entrepot for trade between the Mainland of China and South Korea. Re-export of goods of Mainland origin through Hong Kong to South Korea increased by 3% from HK$29.3 billion in 2006 to HK$30.3 billion in 2007.

Hong Kong's domestic export of goods to South Korea totalled about HK$1.5 billion in 2007. The top three export categories to South Korea in 2007 were:

• Metalliferous ores and metal scrap

• Electrical machinery, apparatus and appliances and electrical   parts thereof

• Telecommunications and sound recording and reproducing   apparatus and equipment

Hong Kong's re-export of goods to South Korea totalled about HK$51.5 billion in 2007. The top three re-export categories to South Korea in 2007 were:

• Electrical machinery, apparatus and appliances and electrical   parts thereof

• Telecommunications and sound recording and reproducing   apparatus and equipment

• Office machines and automatic data processing machines

Hong Kong's import of goods from South Korea totalled about HK$119.4 billion in 2007. The top three import categories from South Korea in 2007 were:

• Electrical machinery, apparatus and appliances, and electrical   parts thereof

• Telecommunications and sound recording and reproducing   apparatus and equipment

• Petroleum, petroleum products and related products

Bilateral Investment

• As at end 2006, South Korea was the 17th major source of inward   direct investment   (IDI) into Hong Kong, with an IDI stock of   HK$19.8 billion.

• As at end 2006, South Korea was the 15th major destination of   outward direct   investment (ODI) from Hong Kong, with an ODI   stock of HK$16.3 billion.

• As at June 2007, 16 regional headquarters, 64 regional offices and   60 local offices   were set up by Korean companies in Hong Kong.

• The South Korea-Hong Kong Investment Promotion and Protection   Agreement   (IPPA) has entered into force since July 1997. The   Agreement further strengthens   the excellent trade and economic   relations between South Korea and Hong Kong.

(Source: Trade and Industry Department, RC Division - www.tid.gov.hk)