South Korean lawmaker seeks revision of law on bank’s partial closure

Representative Min Byoung-dug of the ruling Democratic Party of Korea has filed a bill calling for banks to seek permission from the Financial Services Commission (FSC) when partially shutting down their businesses in the country. The move follows Citibank Korea’s decision in October last year to pull out its retail banking business in phases. The FSC confirmed last year Citibank Korea’s plans to gradually phase out its consumer banking operations are not subject to the regulator’s authorisation. Article 55 of the nation’s Banking Act does not include cases where banks decide to “partially dissolve or close” their businesses. From a customer’s perspective, Min said it is right for banks to receive permission to partially shut down their businesses. The FSC had hinted at a possible revision of the Article last year.