HSBC Insurance has entered into an agreement to dispose of 50% stake in Hana HSBC Life Insurance Company, to joint venture partner Hana Financial Group.
Financial terms of the transaction have not been disclosed, however it is expected that the deal will conclude by 10 May.
The bank said in a statement, "HSBC remains committed to the Korean market and continues to invest in developing its Korean Global Banking and Markets business."
Part of the company's strategy for the development of the whole group, HSBC chief executive Stuart Gulliver is incorporating all measures ranging from job cut to disposal of unprofitable business, thus restructuring the group's operations globally.
Formed in 2008 by HSBC and South Korean Hana Financial, the life insurance joint venture (JV) offers an array of insurance products and services in the country.
Most recently, HSBC offloaded its general insurance business in Macau, and a minority stake in Chinese insurer Ping An for $9.4bn.
At the end of 31 December 2012, Hana HSBC Life had gross assets equivalent to $2.47bn.