Citibank Korea Faces Visible Staff Turnover... "Most Consumer Finance Voluntary Retirements Approved in First Round"

Seoul Jongno-gu Korea Citibank Headquarters./Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Song Seung-seop] A large number of employees belonging to the Consumer Finance division of Citibank Korea are expected to leave the company. More than 80% of the entire staff applied for voluntary retirement, and most of them have received first-round approval notices. There are concerns that if the number of responsible personnel is drastically reduced, it could lead to increased inconvenience for financial consumers in the future.

According to the Citibank union on the 4th, 86% of the retail finance division employees applied for voluntary retirement. Citibank accepted applications for voluntary retirement until the 10th of last month, and first-round approval notices were given only to employees in the Consumer Finance department last month.

A Citibank union official explained at a meeting with reporters after a press conference held in front of the Financial Supervisory Service in Yeongdeungpo-gu, Seoul on the 2nd, “There are 3,250 eligible employees, about 2,300 of whom, approximately 70%, applied. Last month, first-round approval notices were announced only for employees in the Consumer Finance division. Currently, 86% of Consumer Finance employees have applied, and since the bank did not exercise veto power, most are understood to have received approval,” he said.

A Citibank official stated, “Voluntary retirement has not been completely finalized yet, and further procedures remain,” but also mentioned, “(Retail finance employees) have received first-round approval notices.”

If Employees Leave, Who Will Manage My Loan?

On the morning of the 2nd at 10 a.m., officials from the Korea Citibank and financial sector labor unions held a rally in front of the Financial Supervisory Service in Yeongdeungpo-gu, Seoul. Photo by Song Seung-seop

The remaining department employees who wish to take voluntary retirement are also expected to receive approval notices in turn. According to the union, approval notices will be given two to three times monthly. However, it is expected to take some time before voluntary retirement is actually carried out.

The problem is that the reduction in Consumer Finance personnel and branch closures could lead to customer inconvenience. The union also stated, “Last week, about 1,130 people were notified of retirement in the first round,” and insisted, “To ensure customer accessibility and provide face-to-face services, nationwide branches must be maintained for at least two years.”

Currently, Citibank is preparing consumer protection measures in response to an order issued by financial authorities under Article 49, Paragraph 1 of the Financial Consumer Protection Act. Citibank must submit a detailed plan to the Financial Supervisory Service Governor, including basic principles for user protection, user protection measures for each product and service, business channel operation plans, personal information leakage prevention plans, organization, personnel, and internal controls.

Meanwhile, Citibank has recently been working on withdrawing from consumer finance, including suspending new credit card issuance. It is known that Citibank recently sent official letters to partners requesting the suspension of new credit card issuance. As a result, new sign-ups for Citicards issued through KakaoBank have been suspended.