Citibank Korea signed an agreement with Apro Service Group to sell its consumer finance subsidiary Citigroup Capital Korea Inc., as part of the U.S. banking group’s efforts to streamline businesses and divest non-core assets, the company said Tuesday.
The transaction is expected to close in the first quarter of 2016 subject to regulatory approvals. The financial terms of the transaction were not disclosed.
Citigroup Capital Korea accounted for less than 5 percent of Citi’s total revenues in Korea in 2014 and less than 2 percent of total assets.
Apro Service is the No. 1 player in consumer finance in Korea, running the Rush &Cash brand. It also runs OK Savings Bank.
“This transaction is in line with Citi’s global strategy of focusing our resources on core sectors where we have a competitive advantage, including our consumer banking business and institutional banking franchise in Korea," Park Jin-hei, Citibank Korea CEO, said in a press release.
By Lee Sun-young (email@example.com)