The government and the central bank say the volatility in the domestic financial and foreign exchange markets can be expected to continue for a while, pledging to monitor the situation closely and maintain heightened vigilance. 

The assessment was presented Tuesday during a meeting convened by Finance Minister Choi Sang-mok, with the participation of the heads of the Bank of Korea(BOK), the Financial Services Commission and the Financial Supervisory Service.

The participants decided that the domestic bond and money markets are generally stable but require continued monitoring amid crashes in the global stock markets since the U.S. announced its reciprocal tariffs last week. 

Choi instructed a thorough analysis of how changes in the trade environment will affect the growth, inflation and monetary policies of major countries, as well as their policy responses and the ripple effects on the South Korean economy.

The minister also urged the BOK and the financial authorities to continually review and prepare response plans to ensure that market stabilization measures can be promptly implemented if necessary.