Citibank Union "Preparing Follow-up Plan for 3-Year Loan Maturity Extension at Bank"

Citibank Union's 'Resolution Rally Against Financial Supervisory Service's Hasty Approval' on the 2nd
Voluntary Retirement Applicants from Consumer Finance Received First Approval Notice Last Month
Union: "Most Received First Approval Notice as Bank Did Not Exercise Veto"

On the 2nd at 10 a.m., officials from the Korea Citibank and financial sector labor unions are holding a rally in front of the Financial Supervisory Service in Yeongdeungpo-gu, Seoul. Photo by Song Seungseop

[Asia Economy Reporter Song Seung-seop] The labor union of Citibank Korea claims that the bank is preparing a follow-up plan to extend the maturity of borrowers' loans by three years. In the case of voluntary retirement, it is known that the bank did not exercise its 'veto power' significantly over employees belonging to consumer finance, and most of them received the first approval notice.

On the 2nd, the Citibank Korea labor union held a 'Resolution Rally Against the Financial Supervisory Service's Hasty Approval' in front of the Financial Supervisory Service in Yeongdeungpo-gu, Seoul, stating, "We have heard that Citibank is preparing a follow-up plan to extend (personal credit loans) by three years."

The union previously claimed that Citibank Korea was considering a plan to divide the principal and interest payments over 10 years for borrowers whose loans had matured as one of the consumer protection measures. The union submitted its opposition to the financial authorities, arguing that if loans borrowed with a lump-sum maturity repayment method were changed to a principal and interest repayment method, the consumer burden would increase. (Refer to our exclusive report on the 2nd of last month: [Exclusive] Citibank Korea considers ‘long-term principal and interest repayment’ method… Union says “interest burden increases”)

Voluntary retirees belonging to consumer finance receive first approval notice

Jin Chang-geun, chairman of the Citibank Korea labor union, said, “When the union publicly revealed that the bank proposed a plan to convert personal credit loans to 10-year installment repayments, there were reports that the Financial Supervisory Service rejected the plan,” adding, “I am concerned that the bank and financial authorities, pressed for time, might attempt to submit an unverified implementation plan to the Financial Services Commission’s plenary meeting as soon as possible.”

Regarding the voluntary retirement situation at Citibank Korea, Chairman Jin explained, “There are 3,250 eligible employees, about 70% or 2,300 have applied, and last month the first approval notice was announced only for employees belonging to consumer finance. Currently, 86% of employees in consumer finance have applied, and since the bank did not exercise its veto power, most are believed to have received approval.”

Citibank Korea stated that no finalized plan has been made and that there is no information they can confirm. A Citibank Korea official mentioned, “Various measures are being discussed to protect financial consumers during the phased closure process.” Regarding voluntary retirement, the official said, “The first approval notice has been received,” but added, “Voluntary retirement has not yet been completely finalized.”

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