Hong Kong’s emergence as a number one worldwide arbitration heart owes a lot to a collection of institutional reforms, from visa relaxations to versatile financing guidelines, which have made it one of the vital user-friendly authorized environments in Asia, in response to Paul Lam, the autonomous city-state’s Secretary for Justice.
“The Hong Kong authorities and the authorized group in Hong Kong have been working very onerous to attempt to enhance our authorized companies … to make our companies extra handy and extra environment friendly,” Lam advised The Korea Financial Every day in a current interview.
Lam, who has served as justice secretary since July 2022, visited Korea for 5 days from Oct. 20 to attend the APEC Finance and Structural Reform Ministers’ Assembly and a joint authorized seminar hosted with Korea’s Ministry of Justice.
RECORD CASELOAD FOR HKIAC
Along with Singapore, Hong Kong is considered one of Asia’s premier arbitration venues.
The Hong Kong Worldwide Arbitration Centre (HKIAC), based in 1985, dealt with 352 arbitration circumstances final yr, a document excessive, with values of such disputes totaling $13.5 billion, additionally an all-time peak.
Lam credited the expansion to government-level coverage assist.
Since 2020, professionals coming into Hong Kong for arbitration-related work have been allowed entry and not using a separate employment visa.
The association, expanded formally in March this yr, covers arbitrators, legal professionals and witnesses alike.
“They’d not be required to acquire any working allow to come back to Hong Kong. So, it’s immigration comfort,” he stated.
Hong Kong has additionally moved to cut back the fee burden of arbitration.
It now permits third-party funding of circumstances and permits success-based authorized charges tied to arbitration outcomes.
“Over the previous couple of years, we now have offered extra funding choices for the way individuals can finance the arbitration in order that they might pay their lawyer’s charges in arbitration. To be extra particular, we allow a 3rd social gathering to fund the arbitration,” Lam stated.
FINANCIAL, JUDICIAL ECOSYSTEMS IN SYNC
Lam emphasised that the power of Hong Kong’s monetary market and its authorized system are “symbiotic.”
“The stronger our monetary heart, the stronger can be our authorized system. The stronger the authorized system is, our monetary system will turn into simpler. So, it’s like a circle … when one system turns into stronger, the opposite will turn into stronger on the identical time. It’s a constructive suggestions impact,” he stated.
COMMON LAW WITH CHINESE CHARACTERISTICS
Underneath the “one nation, two methods” framework, Hong Kong retains an impartial widespread legislation judiciary distinct from mainland China’s, in response to Lam.
This duality, autonomy below Chinese language sovereignty, provides town “the most effective of each worlds,” he stated.
“Many individuals like to check Hong Kong with Singapore as a result of we seem like so comparable. However, we now have our respective distinctive options … I’m not saying one is superior or higher than the opposite. That’s not the purpose that I’m attempting to make,” he stated.
“To place it differently, Hong Kong has the most effective of each worlds on the one hand, with our impartial widespread legislation system alternatively. We preserve a really shut reference to China’s mainland below the framework of 1 nation, two methods.”
RESPONDING TO NEW CHALLENGES
Hong Kong’s authorized system, Lam stated, can also be adapting to new areas reminiscent of ESG compliance and digital belongings.
The territory just lately enacted the Stablecoin Ordinance, which took impact on Aug. 1, to control digital asset buying and selling.
The Division of Justice is at present reviewing town’s arbitration ordinance to make sure it meets the altering calls for of the worldwide group.
COOPERATION WITH SEOUL
South Korea, too, is accelerating efforts to turn into a global arbitration hub.
On the Asia-Pacific Different Dispute Decision Convention in Seoul on Oct. 29, Korean Justice Minister Jung Sung-ho pledged continued assist to strengthen the nation’s arbitration infrastructure.
Lam praised Korea’s progress, citing its sturdy financial system and technological innovation.
“Korea has already developed an excellent worldwide operation service, however sooner or later, from my perspective, I wish to improve the worldwide collaboration. Extra collaboration, extra interactions with different jurisdictions like Hong Kong, I believe, can be useful,” he stated.
