Sale? Gradual Abolition?… Citi Bank Initiates Discussion on Exit Strategy

[Asia Economy Reporter Kim Hyo-jin] Following Citigroup's decision, Citibank Korea, which is withdrawing from retail banking in Korea, is beginning to actively explore its exit strategy.

According to financial circles on the 27th, Citibank Korea held a board meeting this afternoon to discuss specific plans related to business restructuring, including withdrawal from retail banking.

On the 15th, Yoo Myung-soon, CEO of Citibank Korea, explained to employees, "The management will take sufficient time to carefully review all possible implementation plans in consultation with the board."

Starting with today's board meeting, Citibank Korea is expected to accelerate the preparation of detailed plans. However, it is anticipated that some time will be needed before a final decision is made.

Citigroup announced its business strategy on the 15th during its Q1 earnings report, which included plans for Citibank Korea to withdraw from domestic retail banking. The plan is to continue operations in corporate banking and investment banking (IB) sectors while winding down consumer finance such as credit cards and mortgage loans.

So far, options being considered include selling the wealth management (WM) and credit card retail finance divisions separately or as a whole, or gradually downsizing and liquidating the business, ultimately leading to its closure.

Within financial circles, the value of Citibank Korea's retail banking division is estimated to be in the 2 trillion won range. There are also growing expectations that some regional financial groups and savings bank groups may step forward as potential buyers.

However, the labor union's strong stance that neither sale nor withdrawal can be decided solely by the headquarters is seen as a potential variable in the future.

This content was produced with the assistance of AI translation services.