South Korean financial service providers are scrambling to respond to the “reciprocal" tariffs announced by US President Donald Trump on Wednesday.

Hana Financial Group, one of the country’s top four financial groups, has pledged 6.3 trillion won ($4.38 billion) in support of the small and medium-sized enterprises expected to be hit the hardest by the US tariff measures.

The support package aims to assist SMEs and small merchants amid growing concerns that volatility in financial and foreign exchange markets will continue following the US decision to impose tariffs on all imports, the group explained Thursday.

Hana Bank, the group’s main lending arm, will allocate 6 trillion won to help provide liquidity to SMEs. The bank plans to offer financial support to businesses facing liquidity shortages due to the new tariff policy, including interest rate reductions and loan maturity extensions.

Additionally, the bank will set aside 24 billion won to support auto parts businesses — one of the sectors expected to suffer the most under the new tariffs — through a partnership with the Korea Credit Guarantee Fund later this month.

To further aid exporters, Hana Bank will consider delaying credit rating downgrades for businesses impacted by the tariffs and exempting them from existing trade financing limits.

For small merchants, the bank has allocated 300 billion won in new loans, which will be offered at preferential interest rates.

Hana Financial Group Chair Ham Young-joo stated, “We will expand financial support to help SMEs and small merchants that are expected to struggle with the US' imposition of ‘reciprocal tariffs.’”

Meanwhile, other major financial institutions are also preparing responses to the trade policy shift.

Shinhan Financial Group will hold an emergency meeting convened by Chair Jin Ok-dong on Friday afternoon to address increased market volatility. Its affiliates, including Shinhan Bank and Shinhan Card, are set to hold separate strategy sessions.

KB Financial Group likewise held an executive meeting Friday with Chair Yang Jong-hee in attendance.

At the meeting, the executives agreed to tighten the monitoring of the capital market and currency fluctuations to take swift measures in response, according to the firm.

They also reviewed the impact of the US tariff measure and domestic political changes on the real economy and settled to expand support for small merchants and SMEs as a liquidity provider, helping them overcome financing difficulties.

The group's affiliates held separate strategy sessions, an official from KB Financial said, adding "KB Financial will buckle up to respond to a state of crisis, including domestic politics and foreign issues."

Woori Financial Group is closely monitoring market developments, particularly volatility in the foreign exchange market.

By Im Eun-byel (silverstar@heraldcorp.com)