'Priority on Full Sale' → 'Considering Gradual Phase-Out'... Uncertain Exit Strategy for Citi Bank

[Asia Economy Reporter Song Seung-seop] Citibank Korea has decided to review the preparatory procedures for liquidation work. A specific exit strategy is expected to be presented by July.

According to Citibank Korea on the 3rd, the board meeting held remotely on the same day also discussed a 'gradual abolition' plan. A Citibank Korea official stated, "We will discuss in an open manner various possibilities and detailed conditions to reach the best sale plan," and added, "We have also decided to review the preparatory procedures for implementing the gradual abolition plan."

The board meeting on this day was convened to discuss the withdrawal plan from domestic retail banking. It was the second meeting since the first one held at the end of April.

The reason for the shift in stance from prioritizing a full sale to also considering gradual abolition is reportedly due to employment succession issues becoming an obstacle. The management of Citibank Korea mentioned, "Multiple financial companies have submitted letters of intent to acquire," but also noted, "They expressed negative views regarding the employment succession of all consumer finance employees."

Regarding the future direction, Citibank Korea plans to carefully review the submitted letters of intent and then select the final bidders. Detailed due diligence on the final bidders will also be conducted. About the timing of the plan's derivation, it was explained, "Although there may be some variables in the progress, discussions were held with the aim of presenting the outline of the exit strategy execution by July."

Meanwhile, strong opposition from the labor union is expected as a result of this announcement. The union has shown strong resistance to partial sales and liquidation plans so far. At a one-person protest held yesterday at the Blue House and other locations, the union stated, "We strongly oppose hasty partial sales or asset sales (liquidation)," and argued, "The process should proceed with sufficient time and measures over several years until a stable acquirer for the entire consumer finance business emerges."