[Asia Economy Reporter Song Seung-seop] Citibank Korea announced on the 25th that it will gradually phase out its consumer finance business division. The management of Citibank Korea made this decision at the recently held 3rd board meeting.
This comes about six months after Citigroup announced an exit strategy from the consumer finance business in 13 countries, including Korea, on April 15 as part of its ongoing business strategy restructuring to strengthen global competitiveness and simplify operations.
Citibank Korea stated, “We have prioritized the complete sale of the consumer finance business division on the premise of employment succession and have thoroughly reviewed various options and all proposals. Considering several practical constraints, we have decided to proceed with a phased closure of the entire consumer finance business division.”
For existing contracts, services will continue until the contract expiration or termination date, but new subscriptions to all consumer finance products and services will be suspended. Detailed information, including the date of the suspension, will be announced soon.
Following the closure of the consumer finance business division, Citibank Korea plans to conduct voluntary retirement in consultation with the labor union. For consumer finance employees wishing to remain, the bank will guarantee employment stability as much as possible through internal reassignment.
Bank President Yoo Myung-soon emphasized, “In proceeding with the phased closure of the consumer finance business division, we will strictly comply with relevant laws and supervisory authorities’ measures,” and added, “We will implement employee protection and consumer protection measures, including a voluntary retirement program.”
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