Shinhan Financial Convenes Group Crisis Management Council in Response to Middle East Crisis

Monitoring Infrastructure Projects in the Middle East
Assessing Potential Losses for Clients Holding Financial Products

Shinhan Financial Group announced on March 2 that it recently convened the Group Crisis Management Council in response to heightened geopolitical risks stemming from the deteriorating situation in the Middle East.

This meeting was held to review the group's response system in preparation for the possibility that escalating tensions, such as the recent Iranian airstrikes, could lead to increased volatility in key financial indicators including international oil prices, exchange rates, and interest rates.

Currently, Shinhan Financial is maintaining its crisis management level at 'Caution' and has decided to monitor market conditions and the group's exposure through regular weekly meetings. Should the situation escalate to the 'Alert' level, the group plans to immediately convene a crisis management committee chaired by the CEO, thereby raising its response measures.

Shinhan Financial confirmed that, as of now, there has been no direct impact on the group as a whole. However, the company is continuing to monitor its affiliates and transaction status related to infrastructure projects in the Middle East, and is also reviewing the potential for losses among clients holding financial products affected by increased oil price volatility.

Shinhan Financial is strengthening its ongoing monitoring of financial market indicators and liquidity flows, and has reaffirmed its safety management protocols for employees currently working in high-risk regions such as the Middle East.

Additionally, the group is assessing the possibility of providing liquidity support to companies and partners with transactions linked to the Middle East, and is proactively formulating tailored financial support measures for various crisis scenarios.

Since March 1, Shinhan Bank has been implementing the 'Shinhan Disaster Recovery Financial Support Program' to assist exporters and mid-sized and small enterprises operating overseas that are facing management difficulties due to increased dispute risks.

The program targets companies operating in conflict zones, those with export and import records, and their partner firms. It provides up to KRW 1 billion in working capital and facility recovery funds within the scope of the damages incurred, applies a special preferential rate of up to 1 percentage point, and allows for maturity extensions with preferential rates on loans maturing within three months without requiring additional principal repayment.

At the same time, the group is also conducting checks on the stability of its IT systems and the overall information security framework to prepare for potential cyberattacks resulting from heightened geopolitical risk.

Jin Okdong, Chairman of Shinhan Financial Group, stated, "Through continuous risk monitoring, we will proactively review various financial support measures for small business owners and SMEs at risk of direct impact, and establish a practical system that enables immediate response in the event of a crisis. We will thoroughly monitor global financial markets and geopolitical trends to ensure that market instability does not translate into customer inconvenience or a contraction in the real economy."

This content was produced with the assistance of AI translation services.