user's avatar
Citibank Korea's board
Citibank Korea's board starts talks on exit plan
Citibank Korea held its first board meeting Tuesday after its U.S. headquarters clarified its intention to exit from consumer banking operations 스포츠토토사이트 and in 12 other markets.

Led by CEO Yoo Myung-soon, the six board members, including Citigroup Asia Pacific Regional Franchise Controller Vishal Khandelwal, discussed online the specifics of the bank's withdrawal from retail banking here.

Citibank Korea appears to have more time to finalize the specifics of its exit plan, given that its U.S. headquarters has yet to mention any details about its planned divestments.

"The board of directors meeting extensively discussed the options of a sale of the entire consumer banking business, a sale of part of the business, and a wind down, regarding the pursuit of an exit. Specific dates and details, however, have not yet been decided on," a Citibank Korea spokesman said. "Citibank Korea will put forth all efforts to try to carefully find the best solution for the near future by thoroughly reviewing all possible plans for implementation."

Fitch Ratings said that the sale of Citibank's consumer banking operation could take more than a year, when it revised its outlook on the bank to "evolving" from "negative," Monday. S&P Global Ratings, which maintained its outlook as "stable," expects that the bank will have enough discussions with the financial authorities to minimize its impact on the market.

At this moment, various scenarios are being discussed among market insiders, but sources familiar with this issue said the bank is receiving legal advice for the sale from the nation's top law firm, Kim & Chang.

"It will be difficult for Citibank Korea to sell its entire consumer banking operations to a single buyer, considering the relatively higher labor costs," Kiwoom Securities analyst Seo Young-soo said. "Instead, it will be easier for the bank to sell its wealth management and credit card businesses separately to different buyers."

According to industry officials, KB Financial Group is interested in the bank's wealth management division, while Woori Card and Hana Card are considering acquiring its credit card business. OK Financial Group, which runs the nation's second-largest mutual savings bank, and DGB Financial Group, the Daegu-based financial group that owns Daegu Bank, are mentioned as candidates for acquiring its retail banking operation.
The Citibank Korea union holds a rally in front of the bank's main branch in Seoul, Tuesday. Courtesy of the Citibank Korea union

The Citibank Korea union, however, has protested its headquarters' planned divestiture, calling for the Financial Services Commission (FSC) to disallow the sale until the economy recovers from the COVID-19 pandemic.

"Since the merger with Hanmi Bank in 2005, management has sent over 4 trillion won ($3.6 billion) overseas as dividends and service costs, but it is now conducting the malicious practice typical of foreign capital: seeking a divestment to save costs," union leader Jin Chang-geun said during a rally in front of the bank's main branch in Seoul on the day of the board meeting. "There are concerns over probable damage to customers as well as mass layoffs."

If Citigroup fails to find a new buyer, it may have to lay off a large number of workers, just as HSBC did when it left the Korean retail banking market in 2013.

"The nation's four largest financial groups may consider acquiring Citi's subsidiaries overseas, as Citigroup has made inroads into many Southeast Asian countries," a banking industry insider said.
Citibank Korea's board
0
2
0
Published:
user's avatar
wiki Keonhacai

Citibank Korea's board

0
2
0
Published: