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Exports of US$17.22 billion and imports of $1.88 billion meant Korea's trade balance with Hong Kong through October this year recorded a surplus of $15.34 billion, $1.19 billion more than the trade surplus with China for the same period ($14.15 billion).

Pundits say Hong Kong's emergence as Korea's most profitable trade partner is attributable to rapid increases in exports of jet fuel and kerosene (up 738 percent compared to last year), parts for mobile communications devices (84 percent) and gold (151 percent). In particular, Hong Kong is serving as Korea's gateway to other importers by re-exporting 81 percent of Korean-produced goods to a third country. Of these items, 84 percent went to China, with the rest bound for Southeast Asia, Eastern Europe and South America.

"Hong Kong is of vital economic importance, as the Asian headquarters of over 1,300 global companies are located here," said Lee Kwang-hee, chief of the KOTRA Business Center in Hong Kong. "Korean firms need to aggressively use Hong Kong not only as a bridgehead for the Chinese market but also as a foothold to make inroads into emerging markets, including Eastern Europe and the Middle East."

(englishnews@chosun.com )