이 기사는 2021년 05월 28일 08:01 thebell 에 표출된 기사입니다.

Investors interested in buying Citibank Korea’s retail banking operations feel burdened by the structure of workforce dominated by high-paid employees.

Citibank Korea hasn’t sent out an information memorandum (IM) to prospective buyers of its retail banking business, industry sources said. The bank hasn’t announced any details on the sale after cheif executive Yoo Myung-soon said the bank put its priority on the sale of the retail division as a whole, with its board meeting slated for June 3.

Financial holding companies couldn’t make their decisions yet as they haven’t received IMs from the seller. Some market insiders said the bank’s willingness to restructure is the key to attracting financial holding companies’ interest in the bank because there will be few banks which will be willing to shoulder Citibank Korea’s burdensome workforce structure.

“The Citibank deal could create synergies in the future in terms of a potential expansion into Southeast Asia, but the bank is less attractive if we take into account the restructuring which needs to be done after the possible acquisition,” said an official at a financial holding company.

Citibank Korea hasn’t implemented a voluntary retirement program since 2014. The issue is most employees in the bank’s non-face-to-face channel organization, represented by call centers, are those who are branch managers or higher. Financial professionals with more than 20 years of experience in the branches are working at call centers, making a potential buyer feel burdened by high salaries.

It is also contrary to the recent moves made by domestic major commercial banks which induce senior employees’ early retirement.

In 2017, Citibank Korea said it would offer financial services via online channels while closing about 100 physical branches in South Korea. The bank said it won't slash staff, despite ongoing restructuring measures, but workers at the branches facing closures will be relocated to non-face-to-face channels offering financial advice and other services.

“It will be difficult to find a buyer without carrying out restructuring, unless the bank targets a private equity firm,” said an industry source. (Reporting by Hyun-ji Sohn)