Economic policymakers and financial authorities have agreed to maintain high alert to stave off increased uncertainty in global financial markets following the U.S. Federal Reserve’s fourth consecutive key interest rate hike of 75 basis points. 

Finance minister Choo Kyung-ho, Bank of Korea Governor Rhee Chang-yong, Financial Services Commission Chairman Kim Joo-hyun and Financial Supervisory Service Governor Lee Bok-hyun held an emergency meeting on Thursday to assess the impact of the Fed's rate increase on South Korean markets. 

Choo noted that international financial markets closed overnight with a drop in U.S. stock prices, a rise in interest rates and a stronger dollar as hawkish warnings by the head of the Federal Reserve put the brakes on hopes that the Fed may ease its vice grip on monetary policy.

The finance minister added that the North's missile provocation on Wednesday is expected to have limited impact on domestic markets, but authorities will keep a close eye on the situation. 

Earlier on Wednesday, the Fed announced a fourth consecutive 75 basis-point hike in its benchmark short-term interest rate, setting a new target range of three-point-75 to four percent, the highest since January 2008 and one percentage point higher than South Korea's three percent. 

Fed Chair Jerome Powell warned that thoughts about a potential pause in rate hikes would be “very premature.”