S.Korea's KDB in talks with Lehman -banking source

SEOUL, Sept 2 (Reuters) - State-owned Korea Development Bank (KDB) is in negotiations with Lehman Brothers LEH.N on a possible stake purchase or acquisition of management rights, a senior executive of another top South Korean bank told Reuters on Tuesday.

"We have direct knowledge that (KDB) has been in talks with Lehman," he said.

"KDB has a substantial interest in Lehman and is in talks to reach a deal," the executive told Reuters, adding that detailed terms of a possible agreement had yet to be determined.

He asked not to be identified until a formal announcement on a deal was made.

KDB declined to comment on a Bloomberg report that KDB Chief Executive Officer Min Euoo-sung said the bank was in talks with Lehman.

(Reporting by Kim Yeon-hee; Editing by Jonathan Hopfner)