Citibank Korea to stop new retail service from Feb. 15 under phased exit by 2027

[Photo by Han Joo-hyung]

Citigroup Korea will no longer offer new retail service starting Feb. 15 while existing borrowers can roll over dues until the end of 2026 under the timeline of phasing out of consumer business in Korea.

Citibank Korea on Wednesday handed in its phased exit roadmap to the Korean financial authority under the order of the Financial Services Commission.

Under the scheme, new services related to consumer financing will be suspended on Feb. 15. Services on the existing contracts will continue until the contract expiry dates. Borrowers are entitled to push back payment to the end of 2026 after rollover screening.

Credit card issuance will be stopped. Holders can continue to service their cards until expiry date. A single five-year extension until September 2027 will be allowed for applicants by September.

Membership points on its credit cards can be used for six months after expiry, and unused points will be converted into cash.

Funds and other products without expiration will be continuously serviced before resale.

Citibank brick-and-mortar branches in Korea will be shuttered gradually from the second half of the year. Two in Seoul and near metropolitan areas and seven in others will remain in operation after 2025.

Employees responsible for banking service will be gradually scaled down. Downsizing of staff in charge of internal monitoring and risk management, as well as customer protection will be minimized.

Customers with credit loan from Citibank Korea will be exempted from regulatory requirements when they change their lender to other banks, according to the financial authority.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]