Korea Citibank Halts Card Issuance... What About My Insurance, Funds, and Pension?

Seoul Jongno-gu Korea Citibank Headquarters./Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Song Seung-seop] Korea Citibank, which is in the process of withdrawing from domestic consumer finance, has stopped issuing new credit cards.

According to the industry on the 2nd, Citibank announced through its website the previous day that it would stop issuing 26 credit card products. It is known that Citibank had previously sent official letters to its partners requesting the suspension of new credit card issuance. Following the notice, new sign-ups for Citi Cards issued through KakaoBank were also blocked.

Citibank is currently discussing how to protect and manage loan customers who may be affected during the withdrawal from consumer finance. It is widely expected that the withdrawal process will begin with the card business segment, followed by other financial products.

According to materials disclosed by the Citibank labor union on the 22nd of last month, guidance on other financial products excluding cards mostly states that they can be maintained until maturity or cancellation.

The scale of fund products currently held by Korea Citibank is about 3.5 trillion KRW with 72,000 contracts. This includes insurance (6.6 trillion KRW, 116,000 contracts), personal pensions and pension savings trusts (116 billion KRW, 18,700 contracts), and subscription deposits and installment savings (67 billion KRW, 13,000 contracts).

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