The Korea Development Bank said Tuesday it dropped the plan to take over HSBC’s 11 retail branches in Korea.
KDB said in a statement that it agreed with HSBC to stop acquisition talks due to disagreements over employment conditions, and to no longer seek to buy the U.K.-based bank’s retail operations here.
The state-run bank had begun talks with HSBC in April to acquire its local retail branches in the form of purchase and assumption, which does not involve a transfer of money as KDB was to take over HSBC’s deposit reserves and the same amount of outstanding loans at the same time.
The negotiations fell through, however, as HSBC employees demanded that KDB maintain their working conditions such as one month in vacation time per year and the cumulative severance pay system.
(
sophie@heraldcorp.com)
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