Financial workers demanded that the Banking Act be amended to prevent the liquidation (phase-out) of consumer finance such as credit card and asset management of Citibank Korea. The Financial Union (Chairman Hong-bae Park), the Citibank Korea branch held a press conference on the revision of the Banking Act and a contest condemning the measures ordered by the Financial Services Commission in front of the government complex in Seoul on the morning of the 14th.
The FSC renounces its own authorization authority
Workers criticized the FSC for giving up its financial sovereignty in the process of liquidating Citibank Korea’s consumer finance last year. On October 27, last year, the FSC decided that Citibank Korea’s consumer finance liquidation was “not subject to authorization under the Banking Act.” Article 55 of the Banking Act stipulates that when a bank is divided or merged, dissolved, or the banking business is closed, or when all or an important part of the business is acquired or transferred, approval from the FSC is required. However, there were no regulations on the closure of the entire banking business or the partial closure of the banking business. At the time, the FSC explained, “Citibank Korea’s consumer finance accounted for 30% of its total assets.
The workers pointed out that the FSC gave up its authorization authority on its own. They criticized, “The financial authorities have set a bad precedent in history,” and said, “Through a press release at the time of the announcement, the FSC itself acknowledged the need to revise the banking law.” A bill to amend the Banking Act recently proposed by Min Byeong-deok, a member of the Democratic Party of Korea, is pending in the National Assembly.
Rep. Min attended the press conference on the same day and said, “Once again, I am sorry to the FSC for interpreting the law very narrowly and arbitrarily.” We announced that we would guarantee stability, customer protection, and follow-up management stability.”
“Citibank, it is mandatory for commercial banks to maintain at least 13 stores”
The workers also criticized the FSC’s order to take action. The order of action was issued by the FSC to prevent damage to consumers in the process of withdrawing Citibank Korea. It is a measure in accordance with the Financial Consumer Protection Act (Financial Consumer Protection Act), and it is said that it is the first act since the introduction of the law. The main contents are △Extension of maturity of loans subject to maturity extension in 2026 △Repayment in installments up to 7 years after 2027 △Continue service until the original maturity of mortgage loan △Issuance of credit card renewal once within September △Up to 2027 when applying for renewal after September Used until September. Citibank Korea submitted a user protection plan including this content to the FSC on the 10th, and the FSC announced it on the 12th.
While implementing the user protection plan, Citibank Korea plans to reduce the number of stores from the current 32 to nine by 2025. The union said, “The Financial Services Commission has approved the opening of stores within the year without even giving customers sufficient advance notice. do,” he urged. It is pointed out that branch maintenance measures are the minimum obligation as a nationwide commercial bank with 2.16 million receiving customers and 1.05 million credit cards.
Chairman Park Hong-bae said, “The union will raise the issue of this user protection plan together with branch offices, lawmakers, and consumer groups. I will mobilize it,” he warned.