The government and the central bank said it will closely monitor any potential impact from the U.S. Federal Reserve's latest rate hike.

The stance came during an emergency macroeconomic financial meeting on Thursday attended by finance minister Choo Kyung-ho, Bank of Korea(BOK) Governor Rhee Chang-yong and other financial authorities.

The attendees assessed the impact of the rate increase on domestic and overseas markets, especially as the rate gap between South Korea and the U.S. widened to an unprecedented one-point-75 percentage points.

While positively assessing the Fed's hints that it may pause further rate hikes, the participants agreed to closely monitor the situation amid continuing concerns over inflation and potential market instability from recent bank collapses in the U.S.

They also agreed on the need to stay vigilant against a possible increase in market uncertainty from the widened rate gap and volatility concerns from market disruptions.

The government and the BOK pledged to enhance monitoring of markets at home and abroad, and take necessary stability measures in vulnerable areas of the local financial system.