South Korea's central bank said that it would continue efforts to ensure market stability amid heightened domestic and international uncertainties.

The Bank of Korea(BOK) noted in a report submitted to the National Assembly on Thursday that increased volatility in financial and foreign exchange markets is a major concern for the South Korean economy. 

It added that volatility can increase further at any time when considering external uncertainties such as the worsening U.S.-China trade conflict and Japan's export restrictions on South Korea.

The central bank said that it would take market stabilization measures in case anxiety continues in the market and would closely monitor risks while fine-tuning contingency plans for diverse scenarios.

The BOK added that Japan's export restrictions could damage the South Korean economy by potentially hindering procurement of materials and components for domestic companies.

The bank made clear however that thus far, Japan’s export curbs have had a limited effect on the South Korean economy.