Daily Management of Foreign Currency Liquidity
Activation of the Group Crisis Response Council
Woori Financial Group announced on March 4 that it held a “Current Issues Review Meeting on the Middle East Situation” on March 3 to assess the market impact of heightened geopolitical risks in the Middle East and to discuss response measures.
Following the immediate activation of an emergency response system after the Middle East crisis broke out on March 1, Woori Financial convened the meeting before business hours, chaired by Chairman Lim Jongryong and attended by all holding company executives and the CEOs of major subsidiaries such as the bank, insurance, card, capital, securities, and asset management. The group reviewed its comprehensive risk response system. Chairman Lim identified the safety of Woori Bank employees currently residing in the Middle East as the highest priority. He ordered the seamless implementation of the pre-established contingency plan, which includes the early repatriation of employees’ family members if necessary, to ensure their support.
He also emphasized the implementation of support measures for corporate clients. Chairman Lim stated, “It is important to actively inform and thoroughly explain to corporate customers the details of the emergency management stabilization fund support, the activation of a Fast Track review system, and loan maturity extensions announced by Woori Bank on March 2, to ensure these measures provide real assistance on the ground.” He further called for heightened vigilance regarding IT security and information protection. Chairman Lim said, “With the possibility of IT security threats such as DDoS attacks exploiting the current confusion, we must prepare thoroughly. Please pay special attention to IT security and customer information protection, as unnecessary anxiety can spread in the event of service disruptions.”
He also stressed the need to strengthen foreign currency liquidity management in response to increased exchange rate volatility. Chairman Lim instructed, “As the exchange rate has once again entered a sharp upward trend, we must closely monitor foreign exchange market volatility. The banking division should rigorously re-examine the foreign currency liquidity situation and switch to daily management for the time being.” Additionally, to prepare for increased financial market uncertainty, such as rising market interest rates, the group will meticulously inspect risk factors across foreign exchange, interest rates, asset soundness, and IT security for each subsidiary. In anticipation of a prolonged crisis, efforts will be focused on managing risky assets with a view to the possibility of deteriorating asset quality. The “Group Crisis Response Council” will also be activated for group-wide coordination.
The group will also reinforce its information sharing and monitoring systems. Chairman Lim added, “Woori Financial Management Research Institute should monitor market conditions in real time and quickly provide information to the holding company and subsidiaries. Each subsidiary should operate an emergency response system tailored to its business area, while the holding company should comprehensively manage the group-wide and subsidiary-level response status.” He concluded by urging, “Swiftly track the trends and guidance from financial authorities and cooperate actively with related measures and instructions. If there are any proactive measures Woori Financial can undertake, please take the initiative to propose them.”
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