South Korea's Finance Ministry has warned that the financial market could suffer severe fluctuations if concerns over rising interest rates and consumer prices grow. 

First Vice Finance Minister Lee Eog-won issued the warning on Tuesday in a policy meeting of economy-related officials in Seoul. 
 
Lee said that the financial market, which has long been accustomed to low prices and rates, could suffer from a tantrum if worries over hikes in inflation and interest rates loom large.

The vice minister also mentioned geopolitical risks involving the U.S. and China and a possible capital outflow from emerging economies due to a slower recovery than advanced nations.

He stressed the need for the nation to closely check the repercussions of possible greater global financial volatility on the local economy and the domestic financial market. 

The vice minister said the government will closely analyze the impact of possible rises in global interest rates on local household and corporate debt and come up with countermeasures.