Re: Talks to acq stake in KEB

HSBC Holdings PLC
20 August 2007



             HSBC IN TALKS TO ACQUIRE STAKE IN KOREA EXCHANGE BANK

HSBC Holdings plc confirms that its subsidiary, The Hongkong and Shanghai
Banking Corporation Limited, is in discussions about the possible acquisition of
a majority stake in Korea Exchange Bank, Korea's sixth largest bank by total
assets, from Lone Star.

The discussions are ongoing and, if agreement is reached, the transaction would
be conditional, inter alia, on obtaining the necessary regulatory approvals in
Korea and elsewhere.

A further announcement will be made as and when appropriate.

Note to editors:

HSBC Holdings plc
HSBC Holdings plc serves over 125 million customers worldwide through around
10,000 offices in 83 countries and territories in Europe, the Asia-Pacific
region, the Americas, the Middle East and Africa. With assets of some US$2,150
billion at 30 June 2007, HSBC is one of the world's largest banking and
financial services organisations. HSBC is marketed worldwide as 'the world's
local bank'.




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