Yim Jong-ryong: 'Keep a close watch on the FX rate surge…recheck banks’ foreign-currency liquidity'

Emphasized at Woori Financial’s 'Middle East issue review meeting'

Urged affiliates to conduct thorough risk checks

Yim Jong-ryong, chairman of Woori Financial Group, instructed employees to closely monitor the recent sharp rise in the exchange rate.

At Woori Financial’s Middle East situation review meeting held on the 3rd, Yim said, “With the exchange rate turning back to a sharp upswing, we must keep a vigilant eye on volatility in the FX market,” adding, “Closely recheck the bank’s foreign-currency liquidity position and, for the time being, shift to a daily management regime.”

The won–dollar exchange rate has been surging recently following Iran attacks by the United States and Israel. The exchange rate jumped 26.40 won in a single day on the 3rd (to 1,466.10 won at the 3:30 p.m. close) and then soared to 1,485.70 won in overnight trading (as of 2 a.m. on the 4th). At one point in the early morning hours, it also surpassed 1,500 won.

Yim urged each affiliate to establish a meticulous risk-checking framework as uncertainties in financial markets could grow, including rising market interest rates. He also instructed the group to focus on managing risk assets, taking into account the possibility that a prolonged armed conflict could lead to deterioration in asset quality. He emphasized the need to prepare for information-technology (IT) security threats such as DDoS attacks as well. In addition, he directed the activation of contingency plans, including early repatriation of families, to ensure the safety of employees stationed in the Middle East.

Reporter Kim Jin-seong jskim1028@hankyung.com