Five Major Financial Groups Launch Emergency Response to Middle East Crisis...Liquidity Support for Local Companies

Monitoring Financial Indicators Such as Oil Prices, Exchange Rates, and Interest Rates

Up to KRW 500 Million to 1 Billion in Working Capital for Affected Companies

The five major financial groups in Korea (KB Financial Group, Shinhan Financial Group, Hana Financial Group, Woori Financial Group, and NongHyup Financial Group) have implemented emergency response measures to prepare for potential volatility in domestic and international financial markets triggered by the ongoing Middle East crisis, including the recent conflict between the United States and Iran. These groups are conducting real-time monitoring to ensure that risks related to oil prices and exchange rates do not spread to their individual and corporate clients. At the same time, they plan to provide emergency liquidity support to local subsidiaries and companies engaged in import and export activities.

According to the financial sector on March 2, the five major financial groups have activated group-wide emergency response systems and begun real-time monitoring. KB Financial Group, under the leadership of Chairman Yang Jonghee, has established an emergency response system involving the CEOs and key executives of its main subsidiaries to monitor major indicators such as exchange rates, interest rates, and oil prices, as well as market volatility, in real time. Shinhan Financial Group convened its Group Crisis Management Committee to review the volatility of key financial indicators. It has decided to maintain the current crisis management level at “caution,” but if the situation escalates to “alert,” it will immediately convene a crisis management committee chaired by the group CEO to raise the response level.

Hana Financial Group has newly established a “Rapid Response Team for the Iran Crisis” to strengthen monitoring of conflict zones and set up proactive response systems for various scenarios. On March 1, Woori Financial Group Chairman Lim Jongryong instructed all subsidiaries to conduct emergency checks focusing on four key areas: strengthening the financial market monitoring system, ensuring the safety of overseas employees, supporting companies involved in Middle East-related transactions, and checking cybersecurity. NongHyup Financial Group also launched the “NongHyup Financial One-Firm Council” at the group level on February 28, which was the day the United States began its airstrikes against Iran.

The United States conducted an airstrike on Tehran, the capital of Iran, on the 28th of last month. Photo by AFP Reuters

Banking Sector Launches Financial Support Programs for Overseas Subsidiaries...Working Capital and Preferential Rates Provided

KB Kookmin Bank has launched the “KB Disaster Recovery Financial Support Program” to provide financial support to companies operating in conflict zones, as well as to those with import and export records and their partner firms. The program offers a special preferential interest rate of up to 1.0 percentage point and supports working capital up to KRW 500 million, within the scope of damages. For affected companies with loans maturing within three months, the bank will offer preferential interest rate discounts and maturity extensions without imposing additional principal repayment burdens.

Shinhan Bank also began implementing the “Shinhan Disaster Recovery Financial Support Program” from March 1. Eligible recipients include companies operating in conflict regions and firms with import and export records. Within the scope of damages, the bank will support up to KRW 1 billion in working and facility recovery funds. A special preferential interest rate of up to 1.0 percentage point will also be applied. For loans maturing within three months, Shinhan Bank will provide preferential rates and maturity extensions without requiring additional principal repayments.

Hana Bank has secured a total of KRW 12 trillion to provide emergency liquidity support for companies affected by the Iran crisis, offering up to KRW 500 million in emergency business stabilization funds per company. The bank will extend the maturity of loans up to one year and defer installment repayments for up to six months. A reduction in loan interest rates of up to 1.0 percentage point will also be offered. Hana Financial Group is also working with government agencies to provide essential supplies and relief packages to Korean nationals residing in the Middle East, including Iran.

Woori Bank, through its “Emergency Business Stabilization Fund for SMEs Affected in the Middle East,” will provide up to KRW 500 million in working and emergency operating capital to companies exporting to or winning contracts in the Middle East, those suffering from reduced or delayed transactions related to the region, companies facing business difficulties due to increased logistics or raw material costs, and other small and medium-sized enterprises affected by Middle East geopolitical developments. In addition, Woori Bank will allocate a total of KRW 42 billion to Korea Trade Insurance Corporation to support a total of KRW 800 billion in guaranteed loans, with each company eligible for up to KRW 10 billion, along with preferential export and import fee benefits to help reduce corporate costs.

NongHyup Bank is also operating its “Emergency Crisis Support Program.” Through this program, the bank will promptly provide up to KRW 500 million in new facility and working capital loans and apply a special preferential interest rate of up to 2.0 percentage points. For companies with existing loans, principal and interest payments may be deferred for up to 12 months, and for maturing loans, principal repayment can be postponed by extending the maturity date, thereby easing repayment burdens through financial support.

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