Exchange Rate Nears 1,500 Won, KOSPI Plunges... Financial Sector Strengthens Emergency Response System

Real-Time Monitoring of Exchange Rate Trends and Impacts
Strengthened Oversight of Vulnerable Sectors,
Liquidity Checks on Foreign Currency Deposits
Emergency Video Conferences at All Branches
Text Notifications to Customers, Focus on Asset Protection

Amid escalating geopolitical tensions originating from the Middle East, the won-dollar exchange rate is nearing KRW 1,500, and the KOSPI has plunged, prompting major domestic financial companies to strengthen their emergency response measures one after another. They have shifted to a real-time monitoring system for exchange rate trends and their impact, and have begun to focus on managing the soundness of foreign currency assets, such as checking the liquidity status of foreign currency deposits. At the same time, they are managing vulnerable sectors that are sensitive to changes in international oil prices and exchange rates, providing financial support, and sending guidance messages to customers to ensure they do not face difficulties in asset management.

On the 9th, when the KOSPI dropped more than 6% intraday triggering the sell-side trading halt, employees at the Seoul Hana Bank headquarters dealing room were monitoring the stock market and exchange rates. On the same day, the KOSPI opened the market at 5,265.37, down 319.50 points (5.72%) from the previous trading day on the 9th, while the KOSDAQ opened at 1,096.48, down 58.19 points (5.04%). March 9, 2026, Photo by Jo Yongjun

According to the financial sector on March 9, the five major financial holding groups and their affiliated commercial banks switched to an emergency management system in response to increased exchange rate volatility following the U.S. airstrike on Iran last week.

KB Financial Group has been operating a "Group Emergency Response System" since March 1, with key executives from the holding group and its subsidiaries checking the response status and major issues daily for internal communication. On March 4, when market volatility increased as the KOSPI dropped by about 12%, Chairman Yang Jonghee convened an emergency meeting for executives to discuss market analysis, customer guidance, and support measures. On March 6, Chairman Yang also held a meeting of CEOs from all affiliates to discuss measures to protect customer assets.

KB Financial is especially focusing on "protecting customer assets" in connection with the Iran crisis. A KB Financial official explained, "Our top priority is to minimize portfolio losses for customers exposed to market volatility, and we are closely monitoring key issues." In this regard, major subsidiaries such as KB Kookmin Bank and KB Securities sent text messages with strategies for responding to a declining market to customers holding major products such as funds and trusts, and held an emergency video conference with staff at nationwide branches to discuss the response system for customer inquiries.

They have also begun providing practical financial support, such as new financing, preferential maturity extensions, and preferential interest rates, for domestic mid-sized and small businesses with export and import records in conflict zones.

Shinhan Financial Group also held a consultative meeting on asset management for customers, centered on Shinhan Bank, as the exchange rate surged to the KRW 1,490 range on this day. In response to rising international oil prices and heightened market volatility, they are also providing guidance to customers and staff on the rapidly changing situation.

Earlier, on March 3, Shinhan Bank held a crisis management council meeting to review the situation caused by the Middle East conflict and examine response measures in preparation for a prolonged crisis. The bank has shifted to a daily monitoring system for exchange rate trends, led by working-level departments, and is checking the situation in real time using threshold indicators, among others. If any unusual developments occur that deviate completely from their expected Middle East conflict scenarios, either the Chief Risk Officer-led crisis management council or the crisis management committee led by President Jeong Sanghyuk will be convened.

A Shinhan Bank official stated, "The current crisis level remains at 'Caution,' and we are closely monitoring market trends and the potential propagation paths of the crisis."

Hana Financial Group convened a crisis management council chaired by Chairman Ham Youngjoo and is taking actions such as: ▲ Managing the Bank for International Settlements (BIS) ratio ▲ Strengthening management of vulnerable sectors, including those sensitive to oil prices and exchange rates ▲ Checking the liquidity status of foreign currency deposits and other assets to prepare for a short-term liquidity crunch. They have also provided daily necessities and relief packages to support the safety and livelihoods of Korean nationals residing locally.

Hana Bank, a key affiliate, held a crisis management council meeting chaired by President Lee Hosung, discussing ▲ Checking the risk status and response measures ▲ Implementing scenario-based response plans for the money market group ▲ Operating an emergency system during holidays, among other topics, as part of real-time responses. The bank is also providing a total of KRW 12 trillion in support to companies affected by the Iran crisis.

Woori Financial Group is operating a real-time monitoring system and has strengthened management of assets sensitive to exchange rates, such as foreign currency assets and derivatives. Considering the market situation, they are checking related indicators and trends on a daily basis and operating a group-wide reporting and management system. Woori Bank is also operating a phased crisis management system to respond to oil price and exchange rate fluctuations according to its credit risk crisis management plan, with daily, real-time monitoring of relevant indicators. A Woori Financial official said, "If market volatility increases in the future, we will gradually review and implement necessary measures such as exposure checks and strengthened portfolio management according to our internal standards."

Meanwhile, the Financial Supervisory Service plans to convene vice presidents in charge of foreign currency funds from major commercial banks on March 11 in the afternoon to review foreign currency funding conditions and market situation and discuss future response measures.

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