Korean firms shift to risk-control mode amid Iran tensions

A plume of black smoke rises from a warehouse in the industrial area of Sharjah City in the United Arab Emirates following reports of Iranian strikes in Dubai, Sunday. AP-Yonhap

Korean firms are scrambling to scale back or delay major events and operations in the Middle East, as geopolitical tensions spiked following the joint U.S. and Israeli attack on Iran.

Companies that had prepared high-profile marketing events and other regular business activities in the region are now reassessing their plans with a low-key approach, in a bid to minimize possible risk exposure.

Hyundai Motor Group’s Genesis luxury brand was supposed to invite a group of journalists to Qatar to promote its participation in the 2026 World Endurance Championship (WEC) for three days from March 26.

However, the carmaker is conducting an internal review over whether to proceed with the program as scheduled amid the sudden escalation of tensions in the Middle East.

“We are discussing whether to cancel the media invitation program for the 2026 WEC, but nothing specific has so far been confirmed,” a group official said.

The aviation sector is also directly affected by the geopolitical risk. Korean Air has decided to temporarily suspend its Incheon-Dubai route until Thursday in response to the region's heightened instability.

Korean Air has been the only domestic carrier operating daily round-trip flights for the route seven times a week. The suspension marks a significant disruption to travel between Korea and the United Arab Emirates. Dubai International Airport serves as a key hub connecting to other Middle Eastern destinations.

The financial sector is also moving to swiftly contain potential fallout from the armed conflict in Iran.

Major financial groups have activated emergency response systems and rolled out support measures for companies affected by the latest confrontation between the U.S. and Iran.

Israeli security forces inspect a damaged road after a missile launched from Iran struck Jerusalem, Sunday. AP-Yonhap

KB Financial Group said its key affiliates have stepped up monitoring of market fluctuations and it is now providing customers with updates on any signs of risk in the market.

The financial group also launched a disaster recovery financial program for companies doing business in the conflict areas. Depending on the level of damage, each firm can receive an operational fund worth up to 500 million won ($344,000).

Shinhan Financial Group is also operating a special support program for exporters and small and medium-sized enterprises that face management difficulties due to the increased market volatility from the Middle East crisis.

Hana Bank unveiled an emergency financial support package worth 12 trillion won. Under the plan, companies that have recorded import or export transactions in the Middle East are eligible to receive up to 500 million won in emergency management stabilization funds from the lender.

Woori Financial Group has activated a group-wide emergency response system, and is closely monitoring liquidity conditions and volatility in the foreign exchange market.

Industry officials said major firms here are widely expected to maintain a cautious approach to their operations in the Middle East, as the conflict shows no immediate signs of abating.

“The latest crisis in the region shows that local firms are still vulnerable to sudden external geopolitical risks,” an industry official said. “They will prioritize risk management and operational stability over aggressive expansion or promotional activities there.”