Shinhan Financial Group said on Sunday it held a group crisis management council meeting to respond to an expansion in geopolitical risk stemming from worsening conditions in the Middle East.

Shinhan Financial will keep its crisis management level at “caution” and review market conditions and the group’s exposure through regular weekly meetings.

If the situation is raised to the “alert” level, it plans to step up its response, including immediately activating a crisis management committee chaired by the group CEO.

It has found no direct damage across the group so far, but it is continuing to monitor affiliates and transactions related to infrastructure projects in the Middle East.

It is also closely reviewing potential losses for customers holding related financial products as oil price volatility increases.

Shinhan Financial has strengthened ongoing checks of financial market indicators and money market flows, and reconfirmed its safety management system for employees working in high-risk regions such as the Middle East.

It is also reviewing potential liquidity support for companies and partner firms involved in Middle East-related transactions, and is proactively preparing tailored financial support measures by crisis scenario.

Shinhan Bank in particular launched the “Shinhan Disaster Recovery Financial Support Program” from March 1 to support mid-sized and small exporters and overseas expansion firms facing management difficulties due to rising conflict risks.

Eligible recipients include firms operating in conflict areas, firms with import and export performance, and partner firms. Support includes working capital and facility restoration funding of up to 100 million won within the scope of damage, applying a special preferential interest rate of up to 1.0 percentage point, and extending maturities by applying preferential rates without additional principal repayment burdens for loans maturing within 3 months.

It is also conducting inspections of the stability of its IT systems and its overall information security framework in parallel to prepare for possible cyber attacks due to heightened geopolitical risks.

Jin Ok-dong (진옥동), chairman of Shinhan Financial, said the group will review various financial support measures for small merchants and small and medium-sized businesses that are at risk of direct damage and put in place a system that can respond immediately when a crisis occurs. He said it will closely monitor global financial markets and geopolitical trends and prepare thoroughly so that market anxiety does not lead to customer inconvenience or a contraction in the real economy.