FORM 6-K

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                        Report of Foreign Private Issuer
                    Pursuant to Rule 13a - 16 or 15d - 16 of
                      the Securities Exchange Act of 1934

                           For the month of August, 2007

                               HSBC Holdings plc

                              42nd Floor, 8 Canada
                        Square, London E14 5HQ, England


(Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F).

                          Form 20-F X Form 40-F ......

(Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934).

                                Yes....... No X


(If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82- ..............)



              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'.



                                    SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                               HSBC Holdings plc

                                                By:
                                                Name:  P A Stafford
                                                Title: Assistant Group Secretary
                                                Date:  20 August, 2007