BNK, iM Financial Activate Emergency Response to Middle East Risks, Aid Affected Firms

As instability in the Middle East intensifies, BNK Financial Group and iM Financial Group said they have activated emergency response systems to help stabilize markets and support companies affected by the situation.  

BNK Financial said Tuesday it convened its Group Crisis Management Committee with key executives in attendance.

The committee reviewed the potential impact of the Middle East situation on domestic and overseas financial markets and the real economy. It also monitored the risk of higher inflation from rising global oil and raw-material prices and the possibility of increased market volatility. 

BNK Financial said it will also roll out direct support measures. BNK Busan Bank and BNK Kyongnam Bank will each set up 100 billion won in new recovery financing to help regional companies directly or indirectly affected by the Middle East situation.

Eligible firms include small and midsize companies facing cash-flow strain among exporters and importers trading with the Middle East and related partner companies. Support will be capped at 500 million won per company. For existing loans, the banks plan to offer relief such as maturity extensions and deferrals of installment repayments.

iM Financial said it has also established an emergency response system to address growing geopolitical risks tied to the Middle East. An emergency-response meeting chaired by iM Financial Chairman Hwang Byung-woo brought together executives and department heads from the holding company and its bank and securities units, among others. 

The group said it is proactively reviewing risk ratios and foreign-currency liquidity across affiliates including iM Bank, iM Securities, iM Life and iM Capital, and preparing customer-protection response plans by affiliate. It also plans steps such as tighter oversight of oil- and exchange-rate-sensitive industries and management of FX positions for companies linked to the Middle East.

iM Financial said that if the situation worsens and its crisis-management level is raised from the current “caution” to “alert,” it will form an emergency response council and expand meetings to all affiliates to share groupwide response updates.

“Geopolitical uncertainty in the Middle East is expanding, so we are strengthening groupwide monitoring to prepare thoroughly for volatility in global markets,” Hwang said. “For companies facing difficulties related to the Middle East situation, we will work to reduce real damage through financial support by each affiliate.”