HONG KONG could be a good springboard for Korean companies to tap the China market, according to Trade Development Council chairman Victor Fung.
At the opening of the Hong Kong and Korea Business Round-table yesterday, Mr Fung said: 'While many [Korean] companies might feel comfortable building their own direct links [with China], they could, in fact, develop joint ventures and other China business more effectively using Hong Kong as an intermediary.
'Note that even in Qingdao, where Korean companies have particularly close links, Hong Kong companies have invested more than three times as much as Korean companies.' Mr Fung said Hong Kong had been able to retain its middleman status.
'Despite speculation that the opening of direct trade between the two [China and South Korea] would reduce the role Hong Kong plays as an entrepot, the opposite has been the case,' he said.
Since August 1992, when China and South Korea established diplomatic links, trade had grown steadily from $1.1 billion to an average of more than $2.3 billion a month this year, he said.
At yesterday's meeting, Hong Kong and Korean delegates discussed possible co-operative opportunities in infrastructure development and transport, construction, financial services, distribution, retailing and manufacturing.
