"Hong Kong welcomes corporations from around the world, but this year, buoyed by the K-culture boom, we are focusing even more on attracting Korean corporations."
Cindy Wong, Head of the tourism and hotel institutional sector at Invest Hong Kong, who visited Korea to attend the IFS Franchise Startup and Industry Expo held at Coex in Gangnam-gu, Seoul, on the 25th, said this at a press briefing. Invest Hong Kong, an agency under the Hong Kong Special Administrative Region government, provides a variety of administrative services free of charge to support overseas corporations entering Hong Kong.
Head of Team Wong said, "As tourists from around the world flock to Hong Kong, the food and beverage (F&B) industry is growing rapidly," and added, "Hong Kong is the optimal 'test bed' for corporations seeking to expand overseas. It is easy to first open a restaurant in Hong Kong and then expand into mainland China or Southeast Asia."
According to Invest Hong Kong, 444 overseas corporations entered Hong Kong between January and August this year, attracting 46.0 billion Hong Kong dollars (about 8.3 trillion won) in investment. Compared with the same period a year earlier, the number of corporations increased by 14% and investment rose 11%. The number of new jobs created by overseas corporations entering the market reached 8,945.
In the tourism and hotel institutional sector, a total of 58 corporations newly entered Hong Kong this year. Currently in Hong Kong, overseas franchise corporations across various countries and industries are active, including China's largest coffee chain "Luckin Coffee," Thailand's vending machine coffee brand "Tao Bin," and the U.S. pretzel brand "Auntie Anne's."
In particular, "Yoajeong," an affiliate of Samhwa Food that gained popularity in Korea with yogurt ice cream topped with honeycomb and fruit, opened its first store in Hong Kong early this year. Invest Hong Kong said a Korean jokbal (pig's trotters) franchise store is set to open in Hong Kong's Central district in October, and discussions are underway for an additional 2–3 franchise corporations to enter Hong Kong.
As the Hong Kong government is actively fostering the F&B market, opportunities for overseas corporations to enter Hong Kong are expected to widen further. Chief Executive John Lee recently announced in a policy address the introduction of a pet-friendly dining scheme and the simplification of approval procedures for outdoor dining.
Currently, installing outdoor seating at restaurants in Hong Kong requires about six months of administrative procedures, but this period is expected to be greatly reduced going forward. To attract Muslim tourists, the Hong Kong Tourism Board plans to provide subsidies to restaurants applying for halal certification.
Head of Team Wong said, "Various F&B corporations from mainland China, the United States, the United Kingdom, Japan and Singapore are already operating in Hong Kong," and added, "Hong Kong has no tariff, making it easy to import ingredients, and capital inflows are also free, offering various advantages to corporations. We look forward to more Korean corporations entering Hong Kong going forward."