Citibank Begins Detailed Discussions on Retail Banking Exit Strategy Amid Union Opposition

Discussion of Business Sale and Gradual Closure
Strong Opposition from Labor Union and Other Variables

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

According to the financial sector on the 27th, Citibank Korea held a board meeting via video conference in the 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 this 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 the withdrawal of Citibank Korea 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 the financial sector, there are estimates that the price for Citibank Korea's retail banking division could be in the 2 trillion won range. There is also speculation that some regional financial groups and savings bank groups may attempt to acquire it.

The labor union's strong stance that neither sale nor withdrawal will proceed solely at the discretion of the headquarters is seen as a potential variable going forward.

The union held a protest rally condemning the decision to withdraw from retail banking on the same day. Previously, the union requested the Financial Services Commission to suspend licensing work related to Citibank Korea until the COVID-19 situation ends, guarantee the union's participation in exit strategy discussions, and maintain job security for employees.

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