KDB says drops talks to buy HSBC's South Korean retail banking business

SEOUL Tue Jul 31, 2012 9:19am EDT

A woman walks past a HSBC logo at a branch office in Seoul March 5, 2008. REUTERS/Jo Yong-Hak

A woman walks past a HSBC logo at a branch office in Seoul March 5, 2008.

Credit: Reuters/Jo Yong-Hak

SEOUL (Reuters) - Korea Development Bank (KDB) said on Tuesday it has dropped talks to acquire HSBC's (HSBA.L) (0005.HK) South Korean retail banking operations.

KDB said in a statement negotiations were discontinued as KDB and HSBC failed to reach an agreement on employment conditions.

A KDB official told Reuters the chief disagreement lay in how to reconcile the different personnel structure of the respective operations.

In April, Europe's biggest bank said it was in talks over the possible sale of its Korean retail banking operation after it embarked upon a widespread asset-sale program over the last year.

(Reporting By Joyce Lee; Editing by Muralikumar Anantharaman)

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