South Korea's five major financial groups—KB, Shinhan, Hana, Woori, and NH NongHyup—have activated emergency response systems and pledged financial support for companies affected by U.S. and Israeli airstrikes on Iran.
KB Financial said on the 2nd it will provide up to 500 million won in working capital and facility loans to companies operating in or trading with conflict zones, along with their suppliers. A preferential interest rate reduction of up to 1 percentage point will apply, and firms with loans maturing within three months will receive extensions without principal repayment obligations.
Shinhan Bank will offer up to 1 billion won in working capital and facility loans to companies in affected regions. A 1 percentage point rate reduction will be provided, and loans maturing within three months will be extended at preferential rates.
Hana Bank is deploying a total of 12 trillion won to support corporate liquidity. The bank plans to provide up to 500 million won in emergency stabilization funds to companies operating in or trading with the Middle East, including suppliers. For maturing loans, the bank will offer extensions of up to one year, grace periods of up to six months for installment payments, and interest rate reductions of up to 1 percentage point.
Woori Bank will provide up to 500 million won in operating funds to affected companies. It is also committing 42 billion won to Korea Trade Insurance Corporation to support up to 800 billion won in guaranteed loans, with individual companies eligible for up to 10 billion won.
NH NongHyup Bank will extend up to 500 million won in new loans at preferential rates of up to 2 percentage points to companies operating in Iran or facing business difficulties. For existing loan extensions, principal and interest payments may be deferred for up to one year.