(The Wall Street Journal) -- HSBC, seeking to compete head on with banks such as Standard Chartered and Citigroup in South Korea, said it is in talks to buy a majority stake in Korea Exchange Bank in a move that would bolster the British bank's emerging-markets banking business.

The company said it was in talks to purchase the stake from Dallas-based leveraged-buyout group Lone Star Funds, which has been seeking to sell the stake. Lone Star chairman John Grayken said the firm has had discussions with potential buyers to sell its controlling stake but declined further comment.