A senior government official said market concerns including a possible default by China Evergrande Group could arise while major economies move forward in adjusting policies and deleveraging.

At a meeting on macroeconomics and financial markets on Thursday, First Vice Finance Minister Lee Eog-won said market volatility may expand, depending on the pace tapering by the U.S. Federal Reserve.

Lee said delayed recovery in the job market and prolonged high inflation may aggravate uncertainties surrounding the timing of rate hikes.

The official then called for a thorough inspection into the impact on the local financial market its countermeasures, as well as monitoring the situation surrounding the Chinese property developer.

The vice minister said the government will also seek ways to slow the growth of household debt and ease an imbalance in market finance. On Wednesday, the Fed said it is likely to start tapering its asset purchases soon and signaled it may hike the key rate as early as next year.