HSBC 'aiming to buy S.Korea bank'

BANKING giant HSBC was today reported to be in talks to acquire South Korea's Korea First Bank.

Kim Kyo-shik, secretary-general of Korea's Public Fund Oversight Committee which oversees the sale of government shareholdings, was quoted as saying he was aware London and Hong Kong-listed HSBC had been in negotiations over the business.

One source put a price tag of between 3 trillion won (£1.46bn) and 3.5 trillion won on the possible transaction.

Korea First Bank, the country's eighth-largest lender, is 49%-owned by US-based investment fund Newbridge Capital. The remainder of the shares are held by the government, most through the Korea Deposit Insurance Agency.

Newbridge said it had not reached a deal to sell its stake but stopped short of denying there had been talks to discuss such a sale. HSBC officials in Hong Kong declined to comment.

HSBC has made at least two failed attempts to beef up its South Korean operations in recent years. It already has a limited retail banking presence there, with branches in Seoul and around the country.