By Michael Dabaie

 

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 centers: Singapore, Hong Kong, the UAE and London.

Citigroup said in a Securities and Exchange Commission filing Monday that it had all necessary board approvals for this action by Friday.

"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.

Citibank Korea Inc. 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 michael.dabaie@wsj.com

 

(END) Dow Jones Newswires

October 25, 2021 07:47 ET (11:47 GMT)

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