Four financial groups submit plans to acquire Citi's retail banking unit: sources
Employees are seen inside the headquarters of Citibank Korea in Seoul in this photo taken on April 19. Korea Times file
By Kim Yoo-chul
At least four local financial groups submitted their proposals to acquire Citibank Korea's consumer banking unit, sources familiar with the issue said, Tuesday.
As part of a group-wide business realignment plan, Citibank Korea is on the move to sell off its retail banking business in Korea. Out of the “four viable candidates,” some are interested in acquiring Citibank Korea's entire retail banking operation, while others are reportedly interested in acquiring portions of the business, they added.
Citibank Korea plans to decide on the fate of its retail banking business ― either selling it in its entirety or in pieces or to close it down ― by the end of next month, they added.
“Citibank still prefers to exit its retail banking business quite quickly. Therefore, they are hoping local banks will acquire it,” one local banking industry source said, adding it's unlikely that the bank will discuss the sale plan with non-banking entities due to the time required for them to earn banking licenses.
But the purchase of Citibank Korea's entire retail banking business could raise the possibility of layoffs. As of last year, Citibank Korea employed 3,500 employees, while 2,500 worked at its retail banking business.
Although Citibank Korea announced its intention to pull out of the domestic retail banking market, it said it will continue offering corporate banking services. There is also speculation that Citibank Korea may sell of its credit card business as well, although nothing has been decided yet, according to officials.
Local reports said Citibank Korea seeks “potential buyers” to acquire all of the assets and debt held by the retail banking unit.