Citibank Union "Entering General Strike"... Consumer Finance Withdrawal Crisis Worsens

Press Conference Held on the 26th in Front of the National Assembly in Yeongdeungpo-gu, Seoul
Union: "We Will Engage in High-Intensity Struggles as Mobilized"
Financial Authorities Criticized: "Liquidation Is Clearly Subject to Approval"

On the morning of the 26th, Jin Chang-geun, chairman of the Korean Citibank Labor Union, is reading a press conference statement in front of the main gate of the National Assembly in Yeongdeungpo-gu, Seoul. Photo by Song Seung-seop.

[Asia Economy Reporter Song Seung-seop] The labor-management relationship is heading toward a breakdown amid the withdrawal of consumer finance by Citibank Korea. The union has expressed its willingness to go on a general strike in response to the company's phased abolition (liquidation) plan. With conditions such as the easing of social distancing measures being met, there is a high possibility of actual action, and severe turmoil is expected during the withdrawal process.

On the 26th, Jin Chang-geun, chairman of the Citibank Korea labor union, held a press conference in front of the National Assembly main gate and said, "Since yesterday, we have started one-person protests in front of the Blue House and the Financial Services Commission," adding, "If social distancing is eased, the labor union will engage in high-intensity struggles, including a general strike." The press conference was attended by Min Byung-duk, a member of the Democratic Party of Korea, Bae Jin-kyo of the Justice Party, higher-level labor unions, and civic groups.

Citibank Korea announced the liquidation of its consumer finance division the day before. This decision was made through three board meetings over about six months since it was formalized in April. Market withdrawal plans through full or partial sales were also considered but failed. The union has insisted that it cannot accept any decision other than full sale and, if that is not feasible, the assets should be resold over time.

Possibility of Large-Scale General Strike if Social Distancing is Eased

The union believes that the background of the failed sale lies in the group's hasty announcement. Jin Chang-geun, the union chairman, said, "(The Citi Group) announced its withdrawal from Korea through the media in February, before the sale decision in April," and questioned, "If they officially announce withdrawal before even attempting a sale, wouldn't any potential buyer try to lower the price and reduce the number of employees to be retained?" He criticized, "Since they are going to leave anyway, it is natural to demand a low price without employment succession."

He continued, "We should promote resale through a competitive bidding process with hopeful quantities, maintaining the Citi brand and some shares for five years while dividing the remaining shares among dozens of buyers," and argued, "Otherwise, like the 2016 Colombia Citi case, the sale should be postponed until the overall conditions of the financial industry improve."

There is also a growing atmosphere within the union that a general strike should be undertaken. The Citibank Korea labor union already held a strike vote including a general strike in June, passing it with a 99.1% approval rate. On the 22nd of this month, a vote on fundraising for the struggle recorded a 93.9% approval rate.

Meanwhile, toward the financial authorities, the union pointed out, "Liquidation is clearly subject to Financial Services Commission approval," and warned, "If the financial authorities overlook this, they are neglecting the damage to financial consumers and the large-scale unemployment of employees."

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