LONDON- HSBC , Europe's biggest bank, said it was in talks over the possible sale of its Korean retail banking and wealth management business to Korea Development Bank (KDB), as HSBC continues to divest non-core assets around the world.

HSBC added it remained committed to the Korean market, where it would continue to invest in its Korean investment banking and corporate banking businesses.

HSBC has embarked upon a widespread asset-sale programme over the last year, as part of Chief Executive Stuart Gulliver's plans to cut annual costs by US$3.5 billion (S$4.4 billion), focus more on fast-growing Asian markets and boost its overall profitability.

Earlier this year, HSBC sold its general insurance businesses to French insurer AXA and Australia's QBE Insurance Group for US$914 million in cash, and the company is also considering selling some Mauritius units.