By Kim Tae-jong
Citibank Korea may put its main office building in Seoul up for sale, sources said Wednesday.
The sale apears to be part of its efforts to downscale its business here amid poor performance.
But the bank countered that nothing has been decided regarding the sale of the office building. The 20-story building in Jongno-gu, downtown Seoul is valued somewhere between 300 billion and 400 billion won.
"We considered selling the building in the past, as it is our principle to make the best use of our resources," an official from Citibank said. "We can't rule out the possibility of selling it, but at the moment nothing is in progress regarding its sale."
Speculation that the bank will sell the building to secure liquidity is growing, as it has already announced that it will cut the number of its branches by 30 percent this year as part of a restructuring plan involving a massive "volunteer retirement" of workers. Rumors are that about 600 will have to leave the company.
The bank plans to reduce the number of its branches from the current 190 to 134 by the end of the year. The bank closed 22 branches last year.
The Korean unit's net earnings have decreased amid low interest rates and the economic slowdown ― its net earnings dropped from 456.8 billion won ($434.2 million) in 2011 to 238.5 billion won in 2012 and 219.1 billion won in 2013.
But Citibank Korea said the restructuring came mainly as more people are using online banking services instead of visiting branches in person, and it will instead focus on services and products related to wealth management.
It said the move is also in line with Citigroup's decision to downsize its consumer banking in some countries and focus on wealthy clients in major cities to improve returns.
The company also said it is now considering relocating its main office to the International Finance Center (IFC) in Yeouido, as one of many options.
"Nothing has been decided yet about the moving into the IFC, and the IFC is just one of many options," a Citibank official said.
Seoul City Government is trying to attract foreign tenants to the IFC with very good conditions such as low rents with the aim of making the place Northeast Asia's financial hub.
Citibank Korea may put its main office building in Seoul up for sale, sources said Wednesday.
The sale apears to be part of its efforts to downscale its business here amid poor performance.
But the bank countered that nothing has been decided regarding the sale of the office building. The 20-story building in Jongno-gu, downtown Seoul is valued somewhere between 300 billion and 400 billion won.
"We considered selling the building in the past, as it is our principle to make the best use of our resources," an official from Citibank said. "We can't rule out the possibility of selling it, but at the moment nothing is in progress regarding its sale."
Speculation that the bank will sell the building to secure liquidity is growing, as it has already announced that it will cut the number of its branches by 30 percent this year as part of a restructuring plan involving a massive "volunteer retirement" of workers. Rumors are that about 600 will have to leave the company.
The bank plans to reduce the number of its branches from the current 190 to 134 by the end of the year. The bank closed 22 branches last year.
The Korean unit's net earnings have decreased amid low interest rates and the economic slowdown ― its net earnings dropped from 456.8 billion won ($434.2 million) in 2011 to 238.5 billion won in 2012 and 219.1 billion won in 2013.
But Citibank Korea said the restructuring came mainly as more people are using online banking services instead of visiting branches in person, and it will instead focus on services and products related to wealth management.
It said the move is also in line with Citigroup's decision to downsize its consumer banking in some countries and focus on wealthy clients in major cities to improve returns.
The company also said it is now considering relocating its main office to the International Finance Center (IFC) in Yeouido, as one of many options.
"Nothing has been decided yet about the moving into the IFC, and the IFC is just one of many options," a Citibank official said.
Seoul City Government is trying to attract foreign tenants to the IFC with very good conditions such as low rents with the aim of making the place Northeast Asia's financial hub.
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