Fails to Find a Buyer
Citibank Korea, which has been pushing for the sale of its consumer finance unit, has failed to find a buyer and decided to phase it out. It will maintain existing contracts with consumer, but will not take subscriptions to new products in the future.
On April 15, Citigroup of the United States, the parent company of Citibank Korea, announced an exit strategy for its consumer finance business in 13 countries including Korea as part of its strategy to strengthen global competitiveness and simplify businesses.
Accordingly, Citibank Korea has promoted various measures, including the sale of the consumer finance unit. However, it has failed to find an appropriate buyer. The main hurdle in finding a buyer was its demand for job security of the employees.
Citibank Korea plans to promote voluntary retirement of employees in consultation with the labor union and guarantee employment stability as much as possible for employees who wish to remain. It also plans to consult closely with financial supervisory authorities to minimize customer inconvenience and come up with consumer protection measures to prevent any possible damage to customers.