HSBC exiting retail banking in South Korea

The planned shutdown will eliminate 230 jobs.

HSBC Holdings Plc said it will also close its wealth management business. It will, however, continue to run its more-profitable investment banking business.

The planned shutdown will eliminate 230 jobs and will require regulatory approval from the South Korean government.

HSBC has had difficulties with retail banking, which is dominated by South Korean banks. With only 11 branches in South Korea, HSBC had problems attracting retail customers from competitors such as the Big Four banks that dominate the country's retail banking market.

HSBC is refocusing on key markets such as the U.K. and Hong Kong, mature economies including the U.S., Germany and France, and faster-growing countries such as China, Indonesia and Brazil.

Its South Korea operations (including retail, corporate and investment banking) recorded a net profit of US$37.3 million between January and March, and a net profit of US$163 million in 2012.