▲ This undated file photo shows automatic teller machines (ATMs) of local banks on a street of Seoul. (Yonhap)

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Top financial groups activate crisis-response system amid Middle East tension

SEOUL, March 2 (Yonhap) -- South Korea's five major financial holding companies said Monday they have activated emergency response systems to support local businesses operating in or exporting to the Middle East, following joint U.S.-Israeli military strikes on Iran.

The United States and Israel launched coordinated airstrikes on Iran on Saturday (U.S. time) in a large-scale military operation that killed Iran's Supreme Leader Ali Khamenei amid a prolonged stalemate in indirect nuclear talks between Washington and Tehran.

The five financial firms are KB Financial Group, Shinhan Financial Group, Hana Financial Group, Woori Financial Group and NongHyup Financial Group.

The firms are closely monitoring potential volatility in foreign exchange rates, interest rates and global oil prices, while extending loan maturities and preparing financial support packages for companies with business exposure to the Middle East, an industry official said.

KB Financial, the country's largest financial group by assets, said it plans to provide loans of up to 500 million won (US$343,000) per company at preferential interest rates to firms seeking funds for operations and facility investment.

Shinhan Financial said it will offer loans of up to 1 billion won to companies requiring operating capital or investment funds related to their Middle East operations.

"Investor reactions in Asian financial markets on Monday will serve as a key inflection point for near-term market direction," a Woori Financial official said.

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