On the 1st (local time), as Dubai International Airport in the United Arab Emirates was closed, Emirates flights were halted on the tarmac, while plumes of smoke rose due to Iran’s air strikes./AP News
Major domestic financial groups have activated emergency response systems in relation to the air strikes by the US and Israel on Iran.
According to the financial sector on the 2nd, KB Financial Group, including Chairman Yang Jong-hee, is monitoring exchange rates, interest rates, and oil prices in real-time with key affiliate representatives.
KB Kookmin Bank has proactively launched the ‘KB Disaster Recovery Financial Support Program.’ This program offers a preferential interest rate of up to 1 percentage point to companies and partner companies with business in conflict zones or with export and import records. It provides operating and facility funds of up to 500 million won depending on the scale of damage. For companies holding loans maturing within three months, the maturity can be extended with a special preferential rate without additional principal repayment burden.
Shinhan Financial Group held a Group Crisis Management Council meeting to evaluate and ensure group-wide response systems are in place to deal with potential financial indicator volatility due to the worsening situation in the Middle East.
Shinhan Bank implemented the ‘Shinhan Disaster Recovery Financial Support Program’ from the 1st, aimed at supporting mid-sized and small exporters and overseas companies facing management challenges.
Under this program, companies can borrow up to 1 billion won in operating and facility funds with a special preferential interest rate of up to 1 percentage point, based on the scale of damage. Loans which mature within three months can be extended without additional principal repayment burdens, applying preferential interest rates.
Jin Ok-dong, chairman of Shinhan Financial, stated, “We will thoroughly prepare to prevent market instability from leading to customer inconvenience or real economic contraction.”
Hana Bank announced an emergency financial support package totaling 12 trillion won. This will provide up to 500 million won to companies engaged in export/import activities in the Middle East since January of the previous year or having scheduled transactions, including collaborating suppliers. They will also support extending loan maturities by up to one year, defer loan repayments for up to six months, and reduce loan interest rates by up to 1 percentage point.
Hana Financial Group plans to collaborate with government agencies to provide essential supplies and relief packages to Korean residents in Iran and other Middle Eastern locations.
Ham Young-joo, chairman of Hana Financial, expressed, “We will concentrate all the group’s capabilities to help expatriates and companies affected by unforeseen international instabilities quickly stabilize.”
Woori Financial Group has also activated a company-wide emergency response centered around the holding company, monitoring liquidity conditions and the trends in the foreign exchange and capital markets. They plan to hold investor relations meetings to communicate with the market, reassuring domestic and international investors.
A representative from Woori Financial commented, “The response of Asian financial markets on the 2nd will be a critical inflection point,” and added, “We will cooperate swiftly and seamlessly with any market stabilization measures by the financial authorities.”