South Korea's financial regulators believe the Federal Reserve's latest interest rate increase will have a limited impact on domestic markets, according to a statement from the country's Ministry of Economy and Finance, as the move was largely priced in by investors and the overall financial environment remains stable.

Following the U.S. central bank's policy decision, a meeting was convened in South Korea, which brought together key officials including Finance Minister Choi Kyung-hwan, Bank of Korea Governor Lee Ju-yeol, and heads of various financial supervisory bodies, with the remarks coming out of that session.

Authorities acknowledged that volatility in the bond market has picked up, but noted that necessary stabilization measures would be implemented should there be any excessive fluctuations. Officials plan to keep a close watch on oil prices and global capital flows while jointly assessing their potential impact on domestic financial and foreign exchange markets.