finance news

Citibank to make phased exit from S Korea’s retail banking services

Citibank to make phased exit from S Korea’s retail banking services

Citibank Korea Inc., Citigroup's Korean subsidiary, has reportedly announced that it will phase out its retail banking services in South Korea as part of a global business restructuring effort.

The company announced its intention to exit consumer banking in South Korea during a board meeting held last Friday. Back in April, the banking organization had announced that it would be taking an exit from consumer banking operations across 13 markets as a part of its global business reorganization, this list also contained South Korea.

In a press release, Citibank Korea stated that the decision to end its retail banking activities was made after its board of directors approved the closure following a thorough examination of all proposals.

The company stated that a voluntary retirement program will be set up for its staff members through collaborative efforts with the local Korean union. Meanwhile it would also be pushing to reassign employees, that have worked as part of the soon-to-close service unit, to other fields of the organization.

The bank will also work with financial regulators to minimize any hassles for clients and will continue to provide services until all relevant contracts with depositors expire.

Myung-Soon Yoo, Citibank Korea CEO, stated that Citibank Korea will follow all applicable regulations, procedures, and laws throughout the process to ensure that its customers will not face any kind of inconvenience. Along with that, the firm will also adopt employee security measures, such as a voluntary retirement plan.

Citibank has been in Korea for more than 50 years and is dedicated to supporting the nation's growth and development. Soon Yoo added that the company will continue to invest in and expand its market-leading institutional divisions in the nation.

For the uninitiated, In 1967, Citigroup established its first branch in South Korea, and Citibank Korea was established in 2004 following the acquisition of KorAm Bank.

The Financial Services Commission of South Korea stated that it will take proactive efforts to protect clients from the impending exit of Citibank from Korean retail banking services.

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