The government on Feb. 13 assessed that the possibility of increased digital asset price volatility directly spilling over into financial markets was "limited".

Deputy Prime Minister and Minister of Finance and Economy Koo Yun-cheol (구윤철) chaired a market monitoring meeting at the Korea Federation of Banks in Jung-gu, Seoul, with Bank of Korea Governor Rhee Chang-yong (이창용), Financial Services Commission Chairman Lee Eok-won (이억원) and Financial Supervisory Service Governor Lee Chan-jin (이찬진), and they shared that view, the finance ministry said.

Participants agreed to review digital asset exchanges' overall internal controls so that market anxiety factors, including declining trust in digital assets following the recent "Bithumb incident", do not worsen. They also agreed to push fundamental system improvements and further strengthen market surveillance.

Participants assessed that stock prices have been rising recently while volatility has increased. They said Korean Treasury bond yields have also edged higher due to Japan's rising interest rates and supply and demand pressures.

Accordingly, each agency agreed to strengthen monitoring of the overall bond market, including Korean Treasury bonds, centered on the market monitoring meeting.

They also agreed to check supply and demand conditions with related agencies through a consultative body of bond issuers and discuss response directions.

Koo urged agencies to closely monitor market conditions even during the Lunar New Year holiday, saying external risk factors remain, including the direction of major countries' monetary policy and U.S. tariff policy.

[Yonhap]