HSBC is planning to close its retail banking and wealth management businesses in South Korea as it seeks to revive profitability.
The bank will seek regulatory approval to shut 10 of its 11 branches in the country, leaving behind the South Korea’s global banking and markets unit that serves corporate clients.
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A Hong Kong-based HSBC spokeswoman said 230 staff in Korea will be affected by the closures.
The staff will be offered a redundancy package or the choice of working at the bank until the wind-down is completed.
Since the start of the closures in May 2011, HSBC has closed or disposed of 52 operations, including exiting from retail banking and the wealth-management business in 17 markets and elimination of around 46,000 jobs.
Standard Chartered has also had troubles with its First Bank business since it bought it in 2005 for US$3.3 billion and it may take a more than US$1 billion hit on its Korean business, according to media reports.
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