BNK Financial Group Activates 'Group Crisis Management Committee' in Response to Middle East Crisis

Busan Bank and Kyongnam Bank Allocate KRW 100 Billion
in Recovery Funds for Affected Companies

BNK Financial Group announced on March 3 that it has activated the Group Crisis Management Committee (hereinafter referred to as the Committee) in response to heightened military tensions in the Middle East following a U.S. airstrike on Iran and increased volatility in global financial markets.

On the same day, BNK Financial Group convened an emergency committee meeting to assess the potential impact on financial markets and the real economy, and decided to implement a company-wide risk analysis process.

The main focus will be on the potential rise in international oil and commodity prices, the resulting increase in inflationary pressures, and the intensification of financial market volatility. Depending on how the situation unfolds, the group plans to rapidly upgrade its response measures in stages, including securing liquidity, managing asset soundness, and strengthening capabilities to respond to market risks.

Key affiliates, Busan Bank and Kyongnam Bank, will allocate a total of KRW 100 billion in new recovery funds to support regional companies directly or indirectly affected by the Middle East crisis.

The support targets small and medium-sized enterprises engaged in import and export transactions with the Middle East or related partner companies that are experiencing difficulties in fund management due to the current situation. Each company will be eligible for new financial support of up to KRW 500 million.

In addition, relief measures for existing loans, such as maturity extensions and deferred installment repayments, will also be provided to ease financial burdens.

Other affiliates, apart from the banks, are also monitoring in real time the status of companies among their clients that are exposed to Middle East risks, and will sequentially implement customized financial support measures tailored to the business characteristics of each affiliate.

BNK Financial Group stated that it will continuously monitor global financial market trends through the Committee until the current situation stabilizes, and will further strengthen risk management cooperation among affiliates to proactively respond to financial market uncertainties.

A representative of BNK Financial Group said, "The heightened tensions in the Middle East are a critical issue that can have both direct and indirect effects on our economy and financial markets. As a core pillar of regional finance, BNK Financial Group will bring together the capabilities of all affiliates to carry out proactive risk management and provide practical and systematic financial support to help affected companies overcome the crisis as quickly as possible."