[Asia Economy Reporter Kwangho Lee] Citibank Korea has begun the process of finding a buyer with the highest priority on the full sale of its consumer finance division, which consists of wealth management (WM), credit cards, and loans.
According to the financial sector on the 9th, Citibank has set the full sale of its retail finance division as the top priority and is currently receiving letters of intent (LOI) through two teams within Citigroup: the mergers and acquisitions (M&A) team and Citigroup Global Markets Korea (CGMK).
Yoo Myung-soon, president of Citibank Korea, reportedly explained during visits to branches and communication with employees, "Among the three options?full sale, partial sale, and phased shutdown?the full sale is prioritized. We will find measures for employees and the organization," adding, "The next three to four weeks will be a period focused on reviewing potential buyers."
At the board meeting on the 27th of last month, Citibank stated, "We will carefully review all implementation plans including full sale, partial sale, and phased shutdown of the consumer finance business division," and "We will strive to find the optimal plan within a reasonable timeframe."
In this regard, the financial sector expects Citibank to complete the sale process within this year.
A financial sector official said, "The estimated sale price of 1 to 2 trillion won and high labor costs could be variables," and added, "A full sale is the best option for the employees as well, but it is uncertain whether negotiations will be successfully concluded."
Currently, the average annual salary of Citibank employees is 112 million won, which is the highest level in the banking sector, and the average length of service (18 years and 3 months) is also longer than that of major commercial banks (15 to 16 years).
A Citibank official said, "Further discussions are needed on how to proceed with the exit strategy," and added, "Since a full sale is the most ideal option for both employees and customers, it will be pursued as a priority."
Meanwhile, potential buyers mentioned include foreign banks such as SC First Bank, OK Financial Group, and DGB Financial Group.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
