Will Citi Bank, withdrawing from consumer finance, decide on the 'sale method' at the board meeting later this month?

[Asia Economy Reporter Song Seung-seop] Korea Citibank is expected to finalize the sale method of its domestic consumer finance division at the board meeting scheduled for the end of this month.

According to the financial sector on the 17th, Citibank's regular board meeting is planned for the 26th. It is highly likely that the exit strategy will be decided at this meeting.

Previously, Citibank announced its intention to sell its domestic consumer finance division. It received letters of intent (LOI) from financial companies interested in acquisition and conducted due diligence last month. Although the sale method was initially planned to be decided in July, it has been postponed to this month.

The sale method will be disclosed immediately after the board meeting. Procedures such as selecting bidders, detailed due diligence, and choosing the preferred negotiation partner will follow later.

The exit strategy includes possibilities such as a full sale, partial sale, or phased withdrawal. More than four financial companies are known to be interested in acquisition, but most have expressed reluctance toward a full sale. Instead, they prefer partial sales of the Wealth Management (WM) or credit card business divisions.

Once the exit strategy is finalized, discussions on voluntary retirement for employees are expected to intensify. Citibank has faced criticism that high labor costs and employment succession issues are obstacles to the sale. The last voluntary retirement at Citibank was in 2014.

Meanwhile, depending on the exit strategy outcome, the response policy of the Citibank labor union is also expected to change. The union has stated that it only supports the 'full sale' option. The union has warned that if partial sales or phased withdrawal occur, it will launch a strong resistance campaign.

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