Korea Citibank Nears Exit from Personal Finance... 'Organizational Downsizing and Restructuring'

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

Korea Citibank, which is withdrawing from the domestic retail finance sector, has carried out an organizational restructuring. The main focus is to consolidate and streamline departments under the Consumer Finance Group in line with the significantly reduced workforce.

According to the financial industry on the 14th, Korea Citibank recently changed its structure from 3 groups and 30 headquarters to 3 groups and 25 headquarters. The target was departments under the Consumer Finance Group. Due to business withdrawal and internal staff reduction, nine headquarters were consolidated into four. For example, departments that separately handled savings/deposits, investments, bancassurance, etc., were combined into a single deposit department. The Retail Branch Sales Headquarters, WM Center Sales Headquarters, and Credit Center Sales Headquarters were also reorganized into two headquarters according to their functions.

However, the Consumer Finance Group itself has not been abolished and will be maintained. Valentin Valderavano, Vice President in charge of the Consumer Finance Group, will continue to hold his position.

Yoo Myung-soon, President of Citibank Korea, had announced the organizational restructuring last month. Yoo outlined five key points for sustainable growth, highlighting "organizational restructuring and HR support." He emphasized, "Following large-scale voluntary retirements, we will promptly proceed with organizational restructuring of the consumer finance and support departments to maintain customer service quality," and added, "We will improve Korea Citi’s unique HR systems to align with global Citi standards."

Internal workforce adjustments are also underway. Since approving the first round of voluntary retirements for about 1,100 employees out of approximately 3,500 staff in November last year, Citibank has conducted three additional rounds of retirements. The actual departure dates vary depending on the department, but most voluntary retirement processes are expected to be completed within this month. Approximately 2,100 employees, about 60% of the workforce, have applied for voluntary retirement.

As the number of voluntary retirees increased beyond expectations, raising concerns about work gaps, Citibank has also started rehiring retirees. Although withdrawing from consumer finance, personnel are needed to manage existing loan and deposit assets and to remain stationed at branches for the time being. Rehired employees can be assigned to all job categories and will work on contract terms ranging from three months up to two years.