HSBC Holdings Plc. is considering pulling its retail banking out of South Korea, industry sources said Thursday.
The British banking giant has apparently been looking into closing down the retail banking section, after its botched attempt to sell 11 local branches to state-run KDB Financial Group Inc. in July, according to the sources and the Financial Services Commission.
“We’re looking at all available options,” a HSBC spokeswoman said over the phone. She declined to elaborate further on the matter.
An FSC official said there has been no official request for an approval for closure.
The move came as HSBC has been underperforming in its retail banking business amid the economic slowdown. On the domestic front, a spate of recent regulatory measures to curb ballooning household debts has made foreign lenders operating here refrain from pursuing retail banking services.
In April, HSBC and KDB Financial Group began talks over the Korean banking group acquiring HSBC branches but after three months both banks confirmed negotiations had been called off, citing differences over management strategies after a takeover. (Yonhap News)
