SEOUL, Oct. 25 (Yonhap) — Citibank Korea Inc., the Korean unit of U.S. banking giant Citigroup, said Monday that it will close its retail banking services “in phases” in line with a global business reorganization drive.
Citibank Korea held a board meeting on Friday and made the decision to pull out from consumer banking in South Korea. In April, Citigroup said that it will exit consumer banking operations in 13 markets, including South Korea, as part of its global business reorganization.
“We have explored various measures with the top priority placed on selling (the relevant service unit) but in consideration of some practical limitations, we have decided to take steps to close the consumer banking operations in phases,” a Citibank Korea official said.
Citibank Korea will hold discussions with the labor union and carry out a voluntary retirement program for its employees, while pushing to reassign those who have worked in the soon-to-be-closed service area to other fields.
The bank will also plan to minimize any inconveniences for customers through close coordination with financial authorities and maintain services until relevant contracts with depositors expire.
South Korea’s Financial Services Commission said that it will take necessary measures in an active manner to protect customers from the planned closure of Citibank Korea’s retail banking services.
Citigroup opened its first branch in South Korea in 1967 and launched Citibank Korea in 2004 after acquiring KorAm Bank.