Citibank Holds Board Meeting to Discuss Retail Banking Withdrawal... Will an Exit Strategy Emerge?

Second Meeting Convened After First Board Meeting in Late April
Various Exit Strategy Options Expected to Be Further Discussed
Labor Union Strongly Opposes "Partial Sale and Liquidation"

[Asia Economy Reporter Song Seung-seop] Citibank Korea will hold its second board meeting on the 3rd to discuss plans for withdrawing from domestic retail banking. Although the priority is to discuss a full sale, it is expected that no concrete exit strategy will be announced immediately.

According to the financial sector, during the non-face-to-face Citibank Korea board meeting on that day, a report on the status of potential buyers is expected to be presented. Exit strategy options such as full sale, partial sale, and phased closure are also likely to be further discussed.

Citibank plans to prioritize a full sale. Yoo Myung-soon, CEO of Citibank Korea, reportedly stated during visits to branch offices since April, "Among the three options, the full sale is prioritized," and added, "The next three to four weeks will be a period focused on reviewing potential buyers."

However, there is widespread skepticism that a full sale may be difficult due to the lack of actively interested buyers. Large commercial banks have drawn a line on acquisition intentions because offline retail staff and branches overlap, reducing the appeal. Although some savings banks or regional financial holding companies have been mentioned as possible participants in the acquisition, no financial institution has clearly expressed interest.

The possibility of a split sale is also being considered. Recently, through the investment banking (IB) industry, news surfaced that Hyundai Card would acquire the card division, but they officially denied it, stating, "We initially reviewed it but officially announce that there will be no final acquisition." Hana Financial Group, another potential acquirer, also stated that it has "no intention to pursue acquisition."

Meanwhile, the Citibank labor union has expressed strong opposition to partial sales and liquidation plans. The Citibank Korea branch, which held one-person protests in front of the Blue House, the Financial Services Commission, and the National Assembly the day before, emphasized, "We strongly oppose hasty partial sales or asset sales (liquidation)."