South Korean Biofx makes first overseas expansion with Hong Kong ginseng deal

Why foreign companies are still betting on Hong Kong’s culinary reputation

Seoul-based Biofx has signed a deal with Hong Kong hydroponics firm Farm66 to grow Korean gourmet ginseng in the city and sell it to local consumers and restaurants.

Biofx founder and CEO Jack Kwon signed the agreement last Thursday. The deal marks the first time the Korean company has expanded its hydroponically grown ginseng operations overseas.

First overseas expansion

The partnership comes despite a downturn in Hong Kong’s food and beverage sector. Foreign enterprises are nevertheless continuing to choose the city as a fine-dining destination.

Biofx is one of two companies identified as making a first overseas move in Hong Kong. The other is Okaman Honpo, a 123-year-old Japanese confectioner that will bring its products to local customers.

The two companies are teaming up with city partners as they enter the Hong Kong market. Their decisions show that the city’s culinary reputation continues to attract overseas food businesses even during a difficult period for the sector.

Hydroponics is an indoor cultivation technique in which plants are grown in mineral- and nutrient-infused water rather than soil. The method uses LED lights and typically allows crops to be planted vertically on shelves to optimise space.

For Biofx, the arrangement combines that cultivation system with a local sales channel reaching both consumers and restaurants. For Hong Kong, the deal adds Korean gourmet ginseng to the city’s food and dining offering while Okaman Honpo brings Japanese confectionery to local customers.

Source: South China Morning Post