Citi vows to continue contributing to Korean economy

Citibank Korea headquarters in Seoul / Courtesy of Citibank Korea

By Park Jae-hyuk

Citibank Korea will continue contributing to Korea's economy and financial development, as it has done over the past half century, Citigroup said Monday.

The U.S. financial giant emphasized that its Korean subsidiary's performance and capabilities were irrelevant to its April announcement about the closure of its consumer banking operations in 13 markets, including Korea's.

The group explained that the decision was intended to enhance its global competitiveness and to streamline its businesses in the long run. It vowed to review and implement optimal plans for customers and employees in Korea, reorganizing and strengthening its corporate banking business here.

“Since Citigroup opened its first branch in Korea in 1967 and launched Citibank Korea in 2004, it has been convincingly committed to Korea over the past 50 years,” a Citibank Korea official said. “As a trusted financial partner, we intend to make further contributions to the growth and development of Korean society through long-term social and other contributions as well as through investment in the Korean financial market.”

As the first foreign bank to start a consumer banking business here, Citibank Korea has introduced various new financial systems to the domestic market, such as private banking services, 24/7 access to automated teller machines and 24-hour phone banking services.

It also received the order of diplomatic service merit or “Sungnye medal” in 1978 in recognition of contributions to improving the nation's trade balance by offering loans worth $200 million to the Korean government during the 1970s oil crisis.

Another order of diplomatic service merit, called the “Heungin medal,” was given to the bank several years later in recognition of its contribution to extending the maturity of $24 billion worth of government debt during the 1997 Asian financial crisis.

During the 2008 global financial crisis, the bank increased capital by $800 million, helping stabilize the domestic foreign exchange market and contributing to a currency swap deal between the U.S. and Korea.

In order to contribute to Korean society, Citibank Korea has also run a variety of social contribution programs, such as building housing for needy families, offering financial education for teenagers and supporting talented women in the financial industry.