taking companies and Japanese interests.

5.

30 local representative offices owned by

An overwhelming share of the department store business

in Hong Kong is also owned by Japanese interests. Japanese

companies which have established department stores in Hong Kong include Yaohan, Seibu, Sogo, UNY, Mitsukoshi and Daimaru.

Korea

6.

Korea has recently emerged as another major investor in

Hong Kong. As at the end of May 1993, total Korean investment

in Hong Kong amounted to about HK$7.6 billion. A notable

example of Korean investment is the HK$1 billion petrochemical joint venture project in Hong Kong in which Korean investors in

partnership with Chinese and Italian businesses, are investing

heavily. Korea also maintains a strong presence in the food

products industry.

HK$13 million.

In 1991, investment in this area amounted to

7.

Apart from

the manufacturing industry, there are about

350 Korean companies active in Hong Kong in sectors such as

banking, insurance,

transportation, construction and other

service industries. As at the end of 1992, there were in Hong

Kong 3 licenced banks, 3 restricted licence banks, 8 deposit

taking companies and 8 local representative offices belonging to

Korean interests.

These companies include the Bank of Korea,

the Bank of Seoul, Coryo Securities, Air Couriers, Korea Air and

so on.

8.

Korea's interest in Hong Kong, in particular as a

location for international business cooperation, has increased

enormously in recent years.

The Korean stake in the vast

petrochemical project mentioned above is an example of this.

increasingly using Hong Kong as a base to

establish a regional office to oversee general business activities in the region. We fully expect that, in the wake of

the establishment of diplomatic relations between the People's

Republic of China and Korea, Korean economic.interests in the

Korean companies are

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