Shinhan Financial Group said on the 2nd it convened the group crisis management council to respond to deteriorating conditions in the Middle East following the United States' airstrikes on Iran.
The meeting was arranged to review the groupwide response system in case the heightened tensions triggered by the strikes on Iran lead to expanded volatility in key financial indicators such as international oil prices, exchange rates, and interest rates.
Shinhan Financial is maintaining its current crisis management level at "caution" and decided to review market conditions and the group's exposure through weekly standing meetings. If conditions are elevated to the "alert" level, it plans to immediately activate the crisis management committee chaired by the group CEO and raise the response posture.
So far, there has been no direct damage across the group, but it is continuing to monitor affiliates and transaction status related to infrastructure projects in the Middle East. It is also closely reviewing the potential for losses among customers holding financial products affected by increased oil price volatility.
Shinhan Financial strengthened continuous reviews of financial market indicators and funding market flows, and reverified the safety management system for employees working in high-risk regions such as the Middle East. In addition, it is examining the possibility of liquidity support for Middle East-related transaction companies and partners, and is proactively preparing tailored financial support plans for each crisis scenario.
On the 1st, it implemented the "Shinhan disaster recovery financial support program" to support exporters and mid-sized and small companies expanding overseas that are facing management difficulties due to heightened conflict risks.
Eligible recipients are companies that have entered conflict regions and companies and partners with import-export track records, and the program provides: ▲ up to 1 billion won in working capital and facility restoration funds within the scope of the damage ▲ a special preferential interest rate of up to 1.0 percentage point ▲ for loans maturing within three months, maturity extensions with preferential rates applied without additional principal repayment burdens.