Citibank Korea Inc. arranged the transfer of its customers' loans to KB Kookmin Bank and Toss Bank at preferential interest rates.

The South Korea-based subsidiary of Citigroup Inc. said on its website that existing customers can also transfer their outstanding unsecured loans to other lenders, including mutual savings banks.

Citibank Korea's retail borrowers can file transfer applications for their existing loan contracts starting July 1. Customers who choose not to transfer their loan accounts to another lender will have the option to extend the maturity of their outstanding personal loans until 2026 and arrange for the repayment of unpaid balances over a five-year period starting in 2027.

The transfer of Citibank Korea's unsecured personal loan portfolio, which is said to be worth about 8 trillion won, is part of the bank's decision in April 2021 to exit its retail banking operations, The Korea Herald reported June 22.

In October 2021, the lender said it will close its retail franchise permanently after repeated failures to find a buyer.

As of June 22, US$1 was equivalent to 1,295.40 South Korean won.