American banking giant Citigroup has announced that it will close its retail banking business in South Korea.
The firm decided to close its Korea unit after attempts to divest it failed.
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The lender stated that the decision has received all necessary board approvals and new sales for all consumer banking products will be stopped.
Citi Korea, however, will continue to offer corporate banking services in the country.
Earlier, Citi had announced its plans to exit 13 retail banking markets while reporting its first-quarter results.
Citi stated that it plans to focus its retail banking efforts outside the US in just four markets – Singapore, Hong Kong, the UAE, and London.
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By GlobalDataCiti chief financial officer Mark Mason said: “We continue to make progress on our strategy refresh, allowing us to increase the capital we return to our shareholders over time.
“In Asia and EMEA, we will focus our resources on higher-returning institutional businesses and double down in wealth, where we have distinct competitive advantages and meaningful potential for growth.”
Citi had said it expects to incur significant wind-down and related charges through the end of 2023.
It consists of cash expenditures related to voluntary termination benefits and related charges.
Earlier this month, media reports had emerged that DBS Group and Standard Chartered are among the banks looking to acquire the retail banking assets of Citigroup in Asia.
