Citi flagged a significant charge that will be incurred from the closure of its consumer banking business in South Korea.
The charge will include payouts to employees for a voluntary retirement program in consultation with the local union, according to a statement from Citi, though the bank was unable to make an estimate on the amount.
The bank will also reassign those who are working on areas that will be wound down to other fields.
«Citibank Korea will comply with the applicable laws, regulations and procedures during the process to minimize any inconvenience to our customers and implement employee protection measures, including voluntary retirement program,» said Citibank Korea CEO Myung-Soon Yoo.
More than 50 Years
Citigroup opened its first branch in South Korea in 1967 before launching Citibank Korea in 2004 after acquiring KorAm Bank.
«We have been in Korea for more than half a century and are committed to supporting growth and progress in the country. We will continue to invest in and grow our market-leading institutional franchise in the country,» Yoo added.
The South Korean closure is part of Citi’s broader plans to exit consumer banking in 13 markets where it lacks scale. It recently made a loss-making sale of its Australia consumer unit in August to NAB in a deal valued at about A$1.2 billion ($900 million).
