KB Financial Group said on Monday it has activated a group-wide emergency response system to prepare for a possible increase in volatility in financial markets at home and abroad as geopolitical uncertainty in the Middle East expands. It said it will minimise customer inconvenience while providing financial support for companies expected to be affected.

KB Kookmin Bank began preemptively implementing the "KB Disaster Recovery Financial Support Program" from March 1 to support mid-sized and small and medium-sized exporters and companies expanding overseas that are struggling due to conflict risks.

The support targets companies operating in conflict areas, companies with import and export performance, and their partners. It offers a special preferential interest-rate discount of up to 1.0 percentage point and provides working capital of up to 500 million won within the scale of damage, as well as facility funds to restore damaged facilities.

For affected companies with loans maturing within 3 months, it will support maturity extensions by applying a special preferential interest-rate discount without additional principal repayment burdens.

Major affiliates including KB Kookmin Bank, KB Securities and KB Kookmin Card also strengthened preemptive guidance and checks on market volatility.

KB Kookmin Bank is conducting a detailed analysis of global economic effects and spillover to financial markets under scenario-based assumptions such as a short-term shock and prolonged tensions, and is preparing response measures.

KB Securities promptly informed customers of precautions to prepare for increased market volatility. KB Kookmin Card plans to closely monitor the impact on the real economy from sharp rises in oil prices and weakening consumption, while checking sales trends in related industries such as airline and travel merchants.

A KB Financial official said, "We will closely monitor global financial markets to minimise customer inconvenience, while also making every effort to support the real economy so that we can reduce actual damage to small and medium-sized companies that are vulnerable to this situation."