Seoul: South Korea's five major financial holding companies have announced the activation of emergency response systems to aid local businesses operating in or exporting to the Middle East. This move comes in the wake of joint U.S.-Israeli military airstrikes on Iran.

According to Yonhap News Agency, the United States and Israel carried out coordinated airstrikes on Iran in a significant military operation on Saturday, U.S. time. The strikes resulted in the death of Iran's Supreme Leader Ali Khamenei and took place amid a long-standing impasse in indirect nuclear negotiations between Washington and Tehran.

The five financial firms involved in this initiative are KB Financial Group, Shinhan Financial Group, Hana Financial Group, Woori Financial Group, and NongHyup Financial Group. These firms are monitoring potential fluctuations in foreign exchange rates, interest rates, and global oil prices. They are also working on extending loan maturities and preparing financial support packages for companies with business exposure to the Middle East, as stated by an industry official.

KB Financial, which holds the title of the country's largest financial group by assets, has announced plans to offer loans of up to 500 million won (approximately US$343,000) per company at preferential interest rates. This initiative aims to assist firms in securing funds for operations and facility investments.

Similarly, Shinhan Financial has revealed its plan to provide loans of up to 1 billion won to companies needing operating capital or investment funds related to their operations in the Middle East.

An official from Woori Financial emphasized the significance of investor reactions in Asian financial markets on Monday, noting that these reactions could serve as a pivotal point for determining the near-term market direction.