Finance

Citigroup flags wind down charges after closure of South Korea unit

Citigroup Inc. said it expects to incur significant charges through the end of 2023 from the closing of its South Korea consumer banking business.

The action is part of Citigroup’s previously unveiled plans to exit its consumer franchises in 13 markets across Asia and Europe, the Middle East and Africa. The company in April said it would focus its global consumer bank presence in Asia and EMEA on four wealth centres: Singapore, Hong Kong, the UAE and London.

Citigroup said in a Securities and Exchange Commission filing on 25 October that it had all necessary board approvals for this action by 29 October.

“In connection with the wind down plan, Citi expects to incur significant wind down and related charges through the end of 2023, consisting of cash expenditures related to voluntary termination benefits and related charges,” the company said in the filing.

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Citibank Korea has begun negotiating voluntary termination benefits and related charges with employee unions, and the company said it can’t currently provide an estimate of how much it expects to incur from the wind-down plan.

Write to Michael Dabaie at [email protected]

This article was published by Dow Jones Newswires

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