The South Korean government will proactively check up on risk factors for the domestic financial system and take stabilization measures when necessary as fallout from the global COVID-19 pandemic is expected to continue.

At a meeting with officials on Tuesday, First Vice Finance Minister Kim Yong-beom said concerns over a global recession have increased and market volatility has expanded amid a rapid spread of the virus across North America and Europe.

Kim said shares in global financial markets and U.S. bond yields dipped, despite proactive response measures taken by central banks in countries including the U.S. and Japan.

The vice minister then stressed the need to proactively inspect risk factors in the domestic financial system, and to appropriately enforce stabilization steps, while mobilizing resources to avoid a credit crunch.

Kim, however, advised against excessive anxiety, citing sound fundamentals of the domestic economy, and the much-stabilized financial system.