InterviewCiti steps up support for global investors amid Korea's market reforms

Shahmir Khaliq, Citi's global head of services / Courtesy of Citi

Korea is emerging as an increasingly attractive destination for global investors. From the elimination of the foreign investor registration requirement to its anticipated entry into the FTSE World Government Bond Index (WGBI), Korea is accelerating an unprecedented wave of market liberalization.

These changes are opening new doors for global financial companies, especially those with robust cross-border infrastructure and needs.

Against this backdrop, Shahmir Khaliq, Citi’s global head of services, visited Korea recently. The Korea Times sat down with Khaliq for an exclusive interview to discuss Citi’s global strategy for services and the importance of Korea to its global network.

Q. Citi Services is strategically important to Citi’s overall franchise. How is the business contributing to Citi’s performance?

A. Services is often the gateway to Citi for large institutional clients. Our Services business sits at the heart of Citi’s global network with an industry footprint spanning 94 markets, including a proprietary sub-custody network in 63 of them. We serve around 19,000 clients globally, generate over half of Citi’s deposits and move close to $5 trillion daily.

Our Services business is vital to the operations of thousands of global companies and their cross-market flows as we serve a broad client mix ranging from large corporates to public sector companies, financial institutions and the investor community. Our five business lines — payments, liquidity management services, trade and working capital solutions, issuer services and investor services — are closely integrated to support clients as they optimize operations and move at the speed of business.

From a performance perspective, we had our highest first quarter revenue in a decade of around $4.9 billion in the first three months of 2025. We also generated record revenues in 2024 of over $19.6 billion, a 9 percent increase year-on-year while continuing to make market share gains.

Q. What are your key priorities for the Services business globally and how important is the Korean market? What does Citi hope to achieve here?

A. Our Services business is a core component of Citi’s strategy and the reason we call ourselves the world’s most global bank.

First, we are the undisputed partner for institutions with cross-border needs. This is where our global footprint truly shines. We have clients who need to move their money across continents, manage complex supply chains or invest in diverse markets. Our goal is to continue to be their go-to seamless platform with everything Services has to offer.

Second, we are focused on simplification and digitalization. To ensure we are well-positioned for the future as client needs evolve, we are prioritizing our innovation and technology agenda to deliver best-in-class solutions for our clients. We are tearing down legacy systems to build next-gen digital capabilities and are investing more than $1.5 billion annually in technology.

Third, we are committed to driving growth and returns for the firm. We’re constantly looking for opportunities to expand our wallet share with existing clients and attracting new ones — Citi Commercial Bank clients are a great example of this.

Yeouido financial district in Seoul / gettyimagesbank

Now let’s talk about Korea. Korea is incredibly important to us, it’s a highly strategic market for our services business globally. Korea is a powerhouse of innovation and global trade, and we have very deep relationships with major Korean corporations and financial institutions that operate globally. These are companies that need our cross-border capabilities daily and rely on us for connecting them to markets around the world and manage their international flows.

With over five decades in Korea, we are uniquely positioned to support global and local clients in the market as they navigate a dynamic and complex landscape and deliver global solutions with local insights.

Q. Citi has been modernizing its Services model through innovation including in digital assets. Can you share more about Citi’s progress in this area?

A. In today’s rapidly evolving financial landscape, digital innovation isn’t just something banks need to do, it’s crucial for our continued ability to offer clients cutting-edge solutions.

Our strategy is not just about building technology, it’s about leveraging digital assets to enhance our existing products and services, creating greater efficiency, transparency and new possibilities for our clients.

A prime example of innovation in action is Citi Token Services. We’ve applied tokenized deposits and smart contracts to both cash management and trade finance.

For cash, our clients can transfer liquidity 24/7, effectively creating "always-on" payments that reduce friction related to cutoff times. In trade, we’ve piloted solutions using tokenized depositions and smart contracts to automate conditional payments, reducing processing times from days to minutes.

We are also seeing increased adoption of digital assets on the securities side and provide custody services for crypto-linked securities, including exchange-traded products.

Issuers are also leveraging blockchain networks to improve the issuance and distribution of bonds, and through our Issuer Services business, we have been supporting the settlement of digitally native notes.

And I would be remiss if I didn’t mention AI, which is poised to transform our industry. As an example, we are strategically embedding GenAI to optimize the way we work and to create efficiencies in client delivery.

Q. Korea is rapidly introducing unprecedented market reforms for investors including the removal of foreign investor registration. The market is also anticipating inclusion in the WGBI next year. How is Citi helping global investor clients navigate these changes?

A. Korea’s commitment to market reform is commendable and we are very enthusiastic about the opportunities these changes present for our global investors.

We are helping our clients navigate these developments in several key ways.

First is advocacy. We’ve been at the forefront of these reforms and have been actively engaging with Korean regulators, market participants and local financial market infrastructures. As an example, when foreign investors were no longer obliged to obtain an Investment Registration Certificate, Citi collaborated with the Korean Financial Investment Association to create a standardized opening form, making it simpler for investors as they access the market through multiple brokers or custodians.

Citi headquarters in New York / Reuters-Yonhap

Second is connecting the dots globally. With our extensive global network, we can connect our clients to opportunities and insights from other emerging markets that have undergone similar journeys. We have been actively hosting global roadshows in Japan, Singapore and Hong Kong, with additional sessions planned in the U.S. and China to educate our clients on Korea’s reform efforts.

Third is research and insights. We are continuously evaluating the macroeconomic implications of these reforms and the expected WGBI inclusion next year, offering our clients insights on sectors and individual securities. We’ve been providing strategic advisory services to help our clients understand how to best integrate Korean assets into their global portfolios, considering factors like liquidity as an example.

Lastly, capitalizing on WGBI inclusion. We expect to see an uptick of inflows into the Korean bond market, and we are working closely with our clients to position them optimally for this inclusion. Our FX (foreign exchange) capabilities will be crucial in helping our clients manage currency exposures efficiently.

Q. The transaction from a T+2 to a T+1 settlement cycle in the U.S. last year garnered considerable attention in Korea. How did Citi support and manage this transition?

A. We had a dedicated team who worked closely with the Korea Securities Depository (KSD) to address required changes in operations and processes governing the handling of foreign securities for both domestic investors and securities firms in the market to ensure a smooth T+1 transition.

This included understanding the implications on technology configurations and pre-emptively adjusting operations to accommodate time zone differences, given the shortened settlement cycle. We also worked closely with KSD to conduct extensive scenario planning to ensure contingencies were in place if needed.

Q. Leading such a fast-paced global business must come with its challenges. Is there a personal habit or routine — big or small — that helps you stay grounded?

A. For me it comes down to a deliberate start to my day. I’m typically up early before the market opens. Generally, I start the day thinking about how we are progressing on our immediate priorities.

If my schedule allows, I also find time for golf. Getting out to play allows me to de-stress and focus on other challenges outside the strategic and day-to-day dealings of my role.

Who is Shahmir Khaliq?

Shahmir Khaliq is Citi’s global head of services and a member of Citi’s executive management team. With more than three decades of experience at Citi, Khaliq oversees business across 94 markets and leads key business lines including payments, liquidity management services, trade and working capital solutions, investor services and issuer services. Khaliq began his career with Citi in 1991 and has since held various leadership roles across banking, markets and services.