By Yoon Ja-young
Staff reporter
Citi was the first and is the largest foreign financial firm in Korea. Citi started business as the first foreign bank in Korea in 1967, when the country's per capita gross domestic product (GDP) was merely $142. Since then, Citi has accompanied the country in achieving economic and industrial growth.
When Citi invested $2.73 billion to acquire KorAm bank in 2004, then Deputy Prime Minister of Finance Lee Hun-jai even said that the acquisition would provide more comfort and security to the country than the of one division of U.S. troops.
More significantly, Citi has helped the country whenever it suffered financial difficulties; the oil crisis in the 1970s, the Asian financial crisis in 1997 and the global financial crisis in 2008. "There is a proverb: a friend in need is a friend indeed. Citibank was such a friend to Korea," former finance minister Kang Man-soo said in 2008.
Citi injected $800 million to strengthen Citibank Korea's capital to the highest level in the industry. With 5.38 trillion won capital, Citi is currently the largest foreign capital investor here.
As the most localized global bank, Citi provides full lines of corporate, investment and consumer banking products and global services in Korea. Citi leads in several prominent transactions here.
In 2009, Citi was lead manager in the country's return to the international bond market, the first covered bonds for Kookmin Bank, the first corporate issuance in Asia for POSCO in 2009, and the first convertible bond in Asia for SK Telecom in 2009. In 2010, Citi led bond offerings for Hana Bank and Hyundai Motors.
Citibank Korea announced "Citi, it's different" as a new vision early this year. It aims at achieving profitable growth by providing global Citi's differentiated financial services. "Having 'client first,' 'One Citi', and 'our success' as core values to realize the vision, our differentiated strategy will bring us a bright future," Citibank Korea CEO Ha Yung-ku said.
Since Korea is a core growth market for Citi, it is stepping up its business and brand building efforts. On June 1, Citi established 'Citigroup Korea,' a financial holding company comprising three subsidiaries including Citibank Korea, Citigroup Capital Korea, and Citi Financial Sales Korea alongside a sub-subsidiary, Citi Credit Services.
"It underlines Citi's continued commitment and investment in Korea, and we will realize the highest level of customer satisfaction through differentiated and better aligned financial services," Ha said.