NH and Woori Financial Hold Additional Meetings on Middle East Crisis... 'Fully Prepared for Market Volatility'

Lee Chan-woo of NongHyup Financial: "Strengthening Limit and Soundness Management"

Lim Jong-ryong of Woori Financial: "Transition to Daily Foreign Exchange Management System"

KB, Shinhan, and Hana Financial Groups Also Maintain Emergency Response Systems

On March 4, in response to financial risks becoming apparent amid the Middle East crisis, including the US-Iran war and the exchange rate temporarily surpassing 1,500 won, the heads of some financial holding companies directly chaired additional emergency meetings. The volatility of the financial markets increased, with the exchange rate fluctuating and the KOSPI index plunging, prompting proactive measures to secure the soundness of key affiliates.

According to the financial industry, NH NongHyup Financial Group held a CEO meeting on the morning of the same day, chaired by Chairman Lee Chan-woo, to discuss the sharp overnight exchange rate volatility.

Previously, on February 27, the first day of the US airstrike on Iran, NongHyup Financial established the "NongHyup Financial One-Firm Council" to respond to market uncertainties. The company has especially been operating an emergency monitoring and response system since March 2, continuously checking the situation.

In the case of NongHyup Financial, the scale of foreign currency assets is not large compared to other financial holding companies, so the impact of the surge in the exchange rate on soundness indicators, such as the Bank for International Settlements (BIS) capital adequacy ratio, is considered to be limited.

However, at the meeting, Chairman Lee instructed, "We must strengthen our proactive response systems, including limit management and soundness management, to prepare for expanded financial market volatility."

Woori Financial Group, which activated its emergency response system on March 1, held a "Middle East Situation Status Check Meeting" on the previous day, chaired by Chairman Lim Jong-ryong. Chairman Lim first ordered the full implementation of the pre-established contingency plan, including support for the safety of Woori Bank employees and their families residing in the Middle East and the early return of those families.

He also requested the implementation of emergency business stabilization funds, activation of the fast track review system, extension of loan maturities for corporate support, and preparation for IT security threats.

Regarding the exchange rate situation, Chairman Lim stated, "Since the exchange rate has reverted to a sharp upward trend, we must closely monitor foreign exchange market volatility," and instructed, "The banking division should thoroughly re-examine the foreign currency liquidity situation and, for the time being, transition to a daily management system."

KB, Shinhan, and Hana Maintain Emergency Response Systems... Strengthening Foreign Exchange Liquidity Management

Other financial holding companies are also maintaining their emergency response systems established after the airstrike, monitoring financial market trends in real time.

KB Financial Group is maintaining its emergency response system, involving Chairman Yang Jong-hee, as well as the CEOs of major affiliates and key management, checking major indicators such as exchange rates, interest rates, and oil prices, as well as market volatility, in real time.

A KB Financial official explained, "There was continuous volatility in the exchange rate last year, so we are preparing at the group level," adding, "To minimize foreign exchange translation losses excluding investment profits and losses, we are actively conducting foreign exchange hedging and managing the group's foreign exchange position exposure by considering the foreign exchange positions of each affiliate."

Shinhan Financial Group, which previously convened a group risk management committee, has decided to keep its crisis management level at "caution" for now. If the situation escalates to the "alert" level, the group plans to immediately convene a risk management committee chaired by the group CEO to raise its response level.

Hana Financial Group, which formed a rapid response team for the Iran situation, is continuously checking the emergency response status of its key affiliates. A Hana Financial official stated, "In preparation for a possible drop in the BIS ratio due to a surge in the exchange rate, we plan to maintain a conservative asset management approach and strengthen management for industries sensitive to oil prices and exchange rates."

The official added, "From a liquidity risk management perspective, we plan to strengthen monitoring of foreign currency deposit trends and enhance the level of foreign exchange liquidity management to prepare for short-term funding shortages caused by external environmental uncertainties."

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