[Featured Stocks] 'Russia Financial Sanctions' Begin in Earnest... Financial Stocks Decline Together

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] As economic sanctions against Russia, which invaded Ukraine, are being intensified, domestic financial stocks are showing a decline on the 7th.

According to the Korea Exchange, KB Financial is trading at 55,300 won as of 10:20 a.m., down 3.83% (2,200 won) from the previous day.

Shinhan Financial Group recorded 37,000 won, down 3.14% (1,200 won), and Hana Financial Group (-1.82%) and Woori Financial Group (-2.84%) are also weak.

The sharp decline today is interpreted as being due to Russian banks being excluded from the SWIFT payment network starting from the 12th. SWIFT is an international communication network connecting 11,000 banks in over 200 countries, and exclusion from it restricts access to international financial markets. The European Union (EU) recently decided to expel seven Russian banks from SWIFT.

Meanwhile, among the five major domestic financial groups, Hana and Woori currently operate local subsidiaries in Russia, which is subject to international economic and financial sanctions.

Hana Financial's exposure related to Russia (loans and investments potentially at risk) was about 296 billion won as of the third quarter disclosure last year, and Woori Bank's exposure is about 266.4 billion won.