When HSBC lost out to Standard Chartered in the bidding for Korea First Bank late in 2004, the widespread assumption was that the banking group would soon turn its attention to another takeover target with Korea Exchange Bank, the country’s sixth-largest lender, which was the most likely candidate.

But HSBC executives played down their interest, arguing the bank would be better off expanding its fledgling branch network in Asia’s third-largest economy than splashing out on a big deal.