이 기사는 2021년 04월 20일 07:46 thebell 에 표출된 기사입니다.

Citibank Korea, the South Korean unit of Citigroup, will withdraw its retail business as part of its parent company’s reorganization plans for Asia, while continue to operate its corporate financing business.

The U.S. financial giant made the announcement on Thursday after releasing its first-quarter earnings figures, saying it will exit from consumer banking operations in 13 countries including Korea as part of its strategic restructuring to focus on wealth management and investment banking.

The possibility of restructuring in the Asia-Pacific region has emerged since Citigroup's new CEO took office in February.

South Korean financial authorities are responding cautiously to the Citigroup's decision. They are expecting Citigroup to come up with measures which could minimize market confusion, prevent incidents like bank run, and make a soft landing of Citibank Korea's assets, customers, and employees.

As the U.S. financial giant has decided to continue to operate its corporate financing business including investment banking here, it has to minimize conflicts with the financial authorities.

Citibank Korea is reportedly considering a variety of exit options including a sale. Citigroup already announced on Thursday that it will sell its Australian retail banking business. It is expected to pull out of the Korean retail banking in a similar way.

Industry watchers said Citibank Korea is highly likely to spin off its consumer banking business and sell it.

Some market watchers said the bank may separate retail business and credit card business within the consumer banking business, selling the former to a commercial bank or a savings bank and the latter to a card company.

“We will fold the retail banking business and focus on the corporate financing business only,” said an official at Citibank Korea. “We are considering a sale of the retail banking business, but the specific method hasn’t been decided yet.” (Reporting by Seul-bong Go)