In Hong Kong, 19 unicorn corporations have emerged over the past 10 years. To accelerate this trend, the government is carrying out the Northern Metropolis project, which will develop the entire northern area of Hong Kong into a complex innovation hub for information technology (IT), industry, universities, and more. Over the next five years, Hong Kong's Start - Up ecosystem will grow explosively.
While Start - Up investment has contracted worldwide amid a global economic slowdown and a high interest rate environment, Hong Kong's Start - Up ecosystem is growing steeply. As of 2024, the number of Start - Ups in Hong Kong is 4,694, up about 40% from four years ago. Analysts say the ecosystem is expanding rapidly as the city's traditional strength as an Asian financial hub combines with government innovation policies and strategies for attracting global talent.
At the center of this change is Invest Hong Kong, the government agency overseeing Hong Kong's entrepreneurship and investment ecosystem. Invest Hong Kong supports the entire process so Start - Ups can settle and grow in Hong Kong, including attracting corporations, investment consolidation, and policy guidance.
The person leading the creation of this Hong Kong Start - Up ecosystem is Jayne Chan, head of Start - Ups. After majoring in zoology at the University of Edinburgh in the United Kingdom, Chan served as an executive director at a global nonprofit entrepreneurship network, broadening understanding of the international startup ecosystem.
Chan later joined Invest Hong Kong, taking on the role of drawing overseas and Chinese Start - Ups and investors to Hong Kong, and is playing a key role in transforming the city into a global innovation hub.
ChosunBiz met with head Jayne Chan at Invest Hong Kong on the 14th (local time) to hear about the current state and future of Hong Kong's Start - Up ecosystem and the opportunities that may open for Korean Start - Ups. The following is a Q&A.
─ Hong Kong continues to attract Start - Ups from around the world. What do you think is the biggest reason they flock to Hong Kong?
There are differences by industry, but Hong Kong's Start - Up ecosystem has several fundamental strengths.
First, the low and simple tax system is a major draw. Another advantage is that both the government and the private sector actively supply funds. The Hong Kong government is aggressively injecting public funds through various research support funds and incubator programs. The private institutional sector also has a multi-layered investment ecosystem that includes family offices—more than 200 established since 2022—angel investors, venture capital (VC), private equity (PE), and large stock exchanges.
Geographic advantages are also indispensable. While Hong Kong has excellent accessibility to mainland China, under the One Country, Two Systems framework it maintains an institutional environment familiar to global Start - Ups, including a common law-based legal system, an independent currency, and free movement of capital and people. Another strength is that most major Asian cities are within a three-hour flight. In an Asian business culture that prefers face-to-face meetings, such physical proximity is a competitive edge.
─ What role does Invest Hong Kong play within Hong Kong's Start - Up ecosystem?
Invest Hong Kong provides customized services based on the type and stage of corporations and the founder's region of origin. Invest Hong Kong has 10 industry-specific teams that support information and networking across a variety of fields, from traditional industries such as logistics, infrastructure, and manufacturing to modern industries like finance, digital technology, and data infrastructure.
By stage, for very early-stage Start - Ups, we advise on adjusting business models to fit Hong Kong, and for Start - Ups in acceleration, we also help with overseas expansion. Recently, we even took 20 Hong Kong Start - Ups to Thailand to arrange meetings with four large groups and investors.
For example, if a Series A Fintech corporations from the United States is entering Hong Kong, Invest Hong Kong's Fintech team supports visa applications, bank account openings, networking with financial institutions, and opportunities to participate in relevant events. In addition, the Start - Up-dedicated team provides investment consolidation with investors likely to be interested in this corporations, hosts Start - Up events in Hong Kong, and offers guidance on government grants available in that industry.
─ We can't leave out talent. Is there a way for Hong Kong's Start - Up ecosystem to continue attracting talent?
Talent acquisition for Hong Kong Start - Ups happens largely in two ways: recruiting from domestic universities and attracting outstanding overseas talent.
First, the Hong Kong government and institutions are making significant investments to draw in local talent. For example, the University of Hong Kong recently launched the Entrepreneurship Engine Fund (EEF) worth HK$1 billion in collaboration with several venture capital partners. In particular, CityUHK and others aim to create 300 Start - Ups over three years through the "Hong Kong 300" program. Through the fund, they run programs combining expertise, mentoring, and technology commercialization for faculty founders who are familiar with research but lack commercialization experience.
To attract outstanding overseas talent, we first operate the Top Talent Pass Scheme. If the previous year's taxable income exceeds about HK$2.5 million (about 470 million won), applicants can obtain a Hong Kong visa regardless of employment status. In addition, through the New Capital Investment Entrance Scheme, Hong Kong visas are granted to wealthy individuals who invest HK$30 million (about 5.6 billion won). Of that, 10%, or HK$3 million, is contributed to the Hong Kong Investment Corporation (HKIC) to encourage investment in technology. As policies to cultivate university- and research-based talent within Hong Kong and to attract outstanding overseas talent operate simultaneously, the inflow of talent into Hong Kong has grown significantly over the past two to three years.
─ U.S. President Donald Trump recently raised visa standards for overseas talent. In contrast, Hong Kong remains proactive in attracting outstanding overseas talent.
So, many China-born professionals who were in the United States are moving to Hong Kong. They feel the research environment is more stable, and it seems significant that research for which funding was hard to secure in the U.S. can continue in Hong Kong.
─ There are also Start - Ups in Korea seeking to enter Hong Kong. What do you think is the biggest barrier they feel?
Korean Start - Ups often struggle with language barriers and a lack of market understanding when entering Hong Kong. That is why most first join incubation programs at Cyberport or Science Park.
Korean Start - Ups also face difficulties in the selection process for these programs. In Korea, it takes about three months from application to selection, whereas to move into institutions like Hong Kong Science Park or Cyberport, document review and corporation selection take a longer six months or so. For Korean Start - Ups unfamiliar with paperwork and similar procedures, these aspects are also potential challenges.
─ Is there any way Invest Hong Kong helps address this?
We first try to inform applicants of these aspects in advance. We try to let them know ahead of time when recruitment starts, when the review committee meets, and how long the process will take.
We also have Invest Hong Kong offices in each country so corporations looking to enter Hong Kong can prepare in their home country without coming directly to Hong Kong. If they decide to enter Hong Kong and relocate immediately, various problems can arise when the process takes longer. Rather than moving straight to Hong Kong, we think it is better to use our offices in 35 cities worldwide to develop a market entry strategy.
─ Which industries are Hong Kong Start - Ups focusing on now?
We have been surveying Start - Up industries over the past 10 years, and No. 1 is Fintech. Because Hong Kong is a financial center, we analyze that there is a large pool of related talent. Second is ICT fields such as platform technology or software as a service (SaaS). There are many Start - Ups that provide services like human resources (HR), accounting, and auditing in SaaS form. Third, there are many in e-commerce. Many corporations seeking to enter China, the world's largest e-commerce market, first establish a corporation in Hong Kong and then expand into mainland China.
Fields that have grown rapidly in recent years are GreenTech and HealthTech. GreenTech grew 82% in just the past year. Hong Kong is pushing a climate strategy with a goal of carbon neutrality by 2050, and the stock exchange is also strengthening mandatory ESG disclosures, boosting related demand. Healthtech also grew 54% between 2023 and 2024. Because Hong Kong is the world's second-largest biotech listing hub, the bio-related ecosystem is expanding rapidly.
─ Which industries are Korean Start - Ups entering?
Korean Start - Ups have the largest share in Fintech and Web3. Korea is one of the early adopters of Blockchain and cryptocurrencies, so expertise is high. The fact that Hong Kong is actively pursuing policies on digital assets, tokenization, and stablecoins seems to be attracting these Start - Ups.
─ Why don't many Korean Start - Ups come to Hong Kong?
Korea's own market is large and major corporations are proactive about innovation, so I think Start - Ups are finding sufficient opportunities domestically. Even when they do expand, I understand they first go to Japan or the United States. The U.S. is the largest technology market, and Japan has high cultural familiarity. But it is different for Fintech and Web3. Start - Ups attracted by Hong Kong's regulations and policies are entering Hong Kong.
─ How will Hong Kong's Start - Up ecosystem change over the next five years?
I am confident Hong Kong's Start - Up ecosystem will grow significantly over the next five years. That is because the Hong Kong government is strongly pushing innovation and technology. The Northern Metropolis project, in particular, will have a large impact. A plan is underway to develop the entire northern area of Hong Kong into a complex innovation hub for IT, industry, universities, and tourism.
The pace is fast, too. To expedite development, the chief executive is personally leading a committee to speed up policy implementation. Bidding has already begun for some sites, and two buildings at the HK-Shenzhen I&T Park are scheduled for completion by year-end. To attract capital, the government has introduced global accelerators and matching funds, and Cyberport and Science Park have also received additional budgets to expand facilities. In Hong Kong, 19 unicorns have emerged over the past 10 years. Over the next five years, this trend will accelerate further.