Group Crisis Management Committee Activated, Financial Market Assessment
Busan Bank and Kyongnam Bank Each Plan 100 Billion Won in Recovery Support
BNK Financial Group has entered crisis response mode in reaction to heightened military tensions in the Middle East, following a U.S. airstrike on Iran, and increased volatility in the global financial markets.
BNK Financial Group announced that, as market uncertainties escalated due to the deteriorating situation in the Middle East on March 1, it immediately activated the "Group Crisis Management Committee" and held an emergency meeting before the opening of the financial markets on March 3.
The meeting was attended by key executives who conducted a multi-faceted review of the potential impact of the Middle East crisis on both domestic and international financial markets, as well as the real economy. The group also decided to fully implement a company-wide risk analysis process.
BNK Financial Group has immediately activated the "Group Crisis Management Committee" on the 3rd and is holding an emergency meeting.
The committee has designated the potential rise in international oil and commodity prices, the resulting increase in inflationary pressures, and heightened financial market volatility as its primary areas of focus. Depending on how the market situation develops, BNK Financial Group plans to rapidly upgrade its step-by-step response measures, including securing liquidity, managing asset soundness, and strengthening its market risk response capabilities.
Practical financial support measures will also be implemented in parallel. BNK Busan Bank and BNK Kyongnam Bank, both affiliates, will each newly allocate 100 billion won in recovery funds to support local companies that have been directly or indirectly affected by the Middle East crisis.
Eligible recipients include small and medium-sized enterprises that conduct export-import transactions with the Middle East or belong to related business networks and are experiencing difficulties in fund management due to the current situation. Each company can receive up to 500 million won in new financing, and for existing loans, financial burden relief measures such as maturity extensions and deferred installment repayments will also be offered.
In addition, all affiliates other than Busan Bank and Kyongnam Bank will also participate in supporting affected companies. Each affiliate is closely monitoring, in real-time, the damage sustained by client companies exposed to Middle East-related risks and will sequentially implement customized financial support solutions tailored to each business's characteristics.
BNK Financial Group plans to closely monitor global financial market trends through the committee until the situation stabilizes and to further strengthen risk management collaboration among its affiliates, aiming to proactively address financial market uncertainties.
A BNK Financial Group representative stated, "The escalation of tensions in the Middle East is a critical issue that could have both direct and indirect impacts on our economy and financial markets. As a key pillar of regional finance, we will continue to mobilize the capabilities of all our affiliates to carry out proactive risk management and provide systematic financial support to help affected companies overcome this crisis as quickly as possible."
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