As instability in the Middle East deepens due to the war between the United States and Iran, Hong Kong's status, as it rises as an "Asian family office (FO) hub," is becoming even more firmly established. As global capital pours into Hong Kong, which has overtaken the U.S. Nasdaq to rank first in IPO fundraising, the perception is also spreading that it is a city optimized for FO capital operations.
Earlier, CNBC, a U.S. business media outlet, reported in March, citing investment industry officials, that "as Dubai's image as a safe-haven destination is shaken by the Iran war, the expanded tax benefits Hong Kong offers to family offices could attract wealthy individuals reconsidering investments in the Middle East." In an interview with CNBC, Gaven Cheong, a partner at UK law firm Charles Russell Speechlys and a lawyer specializing in fund formation, said, "I am in discussions almost daily with families considering setting up family offices in Hong Kong, including even families that had left Hong Kong in the past."
This trend is also borne out by the numbers. Hong Kong Government recently said that around 160 FOs are preparing to establish or expand their business in Hong Kong. In addition, according to global consulting firm Deloitte, Hong Kong had 3,384 single family offices (SFOs) as of the end of 2025, up by 681 over the past two years. An SFO refers to an FO dedicated solely to managing the assets of a single wealthy individual or a single family.
◇ Hong Kong, where capital from around the world is pouring in
According to financial information provider LSEG and others, Hong Kong ranked first in the world last year by raising more than USD 37 billion in IPO proceeds. In the first quarter of this year as well, it attracted USD 13.3 billion, far outpacing the U.S. Nasdaq and the New York Stock Exchange.
In particular, with 55% of IPO proceeds in the first quarter of this year concentrated in artificial intelligence (AI) and technology companies, Hong Kong is also rapidly establishing itself as a "technology hub." This year, Chinese AI companies Zhipu and MiniMax raised a total of USD 1.3 billion through IPOs on the Hong Kong stock market, and their share prices have also risen by more than 400% since listing. The Financial Times said in April that it shows that Chinese companies pursuing overseas expansion and investment in research and development are using Hong Kong as a fundraising hub.
The Hong Kong government is also stepping up efforts to foster the biotech industry. Hong Kong is well known for supporting the entire cycle from research and development to commercialization based on its global investor network and clinical and research infrastructure. Dr Bettina Ernst, Director of Bernina Bioinvest, an investment firm focused on early-stage biotech and medtech investments, said, "Hong Kong is a key hub where talent, research, and partnerships from across Asia intersect, providing an optimal environment for innovation investment," adding, "Early-stage companies can easily access universities, medical professionals, and cross-border collaboration networks, allowing them to move quickly on validation and expansion, which is essential to translating scientific achievements into real patient benefits."
◇ Low taxes and simple procedures for establishing FOs
Hong Kong has long been favored by investors for its simple and low-tax structure. In Hong Kong, there is no capital gains tax, value-added tax (VAT), estate duty, or inheritance tax, and no withholding tax is levied on dividends or interest. Corporate tax is structured in two tiers, with a rate of 8.25% applied to the first HKD 2 million (KRW 376 million) in profits. In addition, SFOs that meet certain requirements can qualify for tax exemption, creating a highly favorable environment for wealthy individuals whose primary objective is the preservation and management of assets.
This stands in contrast to the recent trend of major global cities pursuing tax increases in recent years. In the United Arab Emirates, corporate tax was introduced in 2023, raising the rate from 0% to 9%. Japan also raised corporate tax from April 2026 by additionally imposing 4% on the amount obtained after deducting JPY 5 million (KRW 46 million) from the corporate tax amount for each business year, while corporate tax increases are also reportedly under review in New York State. A proposed 2026 California ballot measure aims to impose a one-time 5% "wealth tax" on residents with a net worth exceeding US$1 billion.
To actively attract FO demand, the Hong Kong government has been steadily expanding the range of eligible investments that SFOs can manage. They are enhancing tax incentives for SFOs, family-owned investment holding vehicles, and investment funds. In particular, the key focus is the expansion of tax benefits to a wide range of assets, including precious metals such as gold, digital assets, and private credit.
The procedure for establishing an FO is also relatively simple. If the activity does not fall under regulated activities under Hong Kong's Securities and Futures Ordinance, no separate license or prior approval is required to establish a family office. This stands in contrast to Singapore, where licensing is required and usually takes more than a few months before operations commence.
For these reasons, Hong Kong is becoming even more popular among wealthy individuals seeking to expand both their businesses and family assets simultaneously. Jolly Yip, Deputy Global Head of Family Office at InvestHK, will visit Korea to engage with local families and business leaders, fostering dialogue and sharing insights on cross-border opportunities.
Jolly said, "As family businesses pursue international expansion and diversification, professional and structured management of family assets becomes increasingly essential. Hong Kong plays a critical role in this process, enabling global enterprises to expand their business footprint across the Chinese Mainland and Asia."
He added, "For Korean high-net-worth individuals, coming to Hong Kong is not only about accelerating corporate value, but also about identifying new opportunities for growth in their personal wealth journey and broader life aspirations. In this regard, Hong Kong serves as a compelling springboard to some of the world's most dynamic industries."