Finance minister Choo Kyung-ho said on Thursday that the U.S. Federal Reserve's latest rate hike is expected to have a limited impact on the domestic financial market.

The minister presented the assessment in a meeting with Bank of Korea Governor Rhee Chang-yong and heads of the country's financial regulators.

The minister's remarks came after the U.S. Federal Reserve raised its key interest rate by three-quarters of a percentage point for a second straight month on Wednesday. The new target range is two-point-25 percent to two-point-five percent, higher than South Korea's two-point-25 percent.

Choo said the Fed's decision generally matched market expectations, and as the global financial markets responded to the rate hike smoothly overnight, the hike is expected to have a limited impact on the South Korean market.

The minister also dismissed concerns that the reversal of the interest rate gap between South Korea and the U.S. could trigger foreign capital outflows.

He said that in the previous three cases of the interest rate reversal, foreigners were net buyers of South Korean stocks, stressing that South Korea's economic fundamentals and proper responses to global economic issues have a greater impact on capital movement.