To respond to the Middle East situation, the financial sector last month moved to provide 9.7 trillion won in financial support. The financial authorities plan to maintain an emergency response system by continuously inspecting risk factors by financial industry in preparation for a prolonged Middle East risk.
The Financial Services Commission said on the 8th that it held a "financial industry task force meeting on the Middle East situation" at Government Complex Seoul, presided over by Financial Industry Bureau Director Kim Jin-hong. The Financial Services Commission (FSC) and the Financial Supervisory Service have formed a "financial sector emergency response task force (TF)" in relation to the recent situation in the Middle East and are operating subgroups for the financial industry, the real economy, and financial markets.
According to the Financial Services Commission (FSC), the banking sector has prepared a plan to supply 53 trillion won plus alpha (α) in new funds and will extend maturities and defer repayments on existing loans for corporations damaged by the Middle East situation. The banking sector last month provided about 5 trillion won (8,697 cases) in new funds to support corporations affected by the Middle East situation.
In the insurance sector, support measures that the public can feel are being implemented and reviewed. To support delivery riders who rely on their work for a livelihood, insurers will offer a 20%–30% premium discount on personal injury coverage and are considering expanding the number of participating insurers (currently three).
Card companies will offer expanded benefits compared with existing ones when issuing and using fuel-specialized cards and when using K-Pass, and capital companies, to ease the management burden on the cargo transport industry, will from the 10th (rolled out sequentially by company) allow up to a three-month deferral of principal repayment on truck installment financing (about 50,000 borrowers, about 4 trillion won in outstanding balance).
Participants at the meeting said the impact of financial market fluctuations, such as exchange rates and interest rates, on the financial sector is limited and still at a tolerable level.
An official at the Financial Services Commission (FSC) said, "If abnormal signs such as market tightening occur, each financial company must prepare an emergency response system so that prearranged crisis response measures can be activated immediately."