SEOUL– Citibank Korea Inc. said Wednesday it has approved applications of about 880 more employees to leave the company in a voluntary retirement program under way as part of efforts to discontinue its retail banking services here.
Since the South Korean unit of U.S. banking giant Citigroup announced the voluntary retirement scheme in late October after the decision to close its retail service, 2,300 employees, or 66 percent of about 3,500 eligible workers, had applied to leave the company.
Wednesday’s approval came after the company decided to let go of some 1,100 workers on Nov. 24. So far, around 1,980 workers have been allowed to leave the company in return for compensation.
“A review is still under way for the remainder,” the company said.
Under an agreement between the company and its labor union, those who leave the company early will be able to receive special severance pay equivalent to up to seven years of basic salary with a ceiling of 700 million won (US$592,000).
Citibank Korea announced its decision in late October to discontinue its consumer banking operations in South Korea in phases as part of Citigroup’s global business reorganization.
Citibank Korea has said it will work hard to minimize inconvenience for customers through close consultations with financial authorities and maintain services until remaining contracts expire.
Citigroup opened its first branch in South Korea in 1967 and launched Citibank Korea in 2004 after acquiring KorAm Bank.
Source: Yonhap News Agency