Hong Kong Explores Stablecoin Expansion Amid South Korea Partnership Push

Hong Kong's Financial Secretary Paul Chan Mo-po concluded a three-day diplomatic visit to Seoul, signaling the city's intent to deepen ties with South Korea on digital asset innovation. The discussions focused heavily on Hong Kong's forthcoming stablecoin regulations, which have drawn keen interest from Korean financial regulators and institutions.

Securities transactions between Hong Kong and Korean entities surged to HKD 1.5 trillion ($191 billion) in the first five months of 2025—a 180% year-over-year increase. This growth follows Hong Kong's strategic positioning as an Asian hub for financial technology, particularly in cryptocurrency infrastructure development.

The visit addressed information gaps created by pandemic-era travel restrictions, with Chan emphasizing Hong Kong's revived IPO market and financial product innovation. These developments are increasingly attracting Korean investment capital into the Special Administrative Region's markets.