The South Korean financial and foreign exchange markets have remained stable for days despite escalating tensions over North Korea's missile and nuclear threats, the finance ministry here said Wednesday.

"As the recent US attack against Syria sparked volatility in the local financial market, some raised concerns over the geopolitical risks stemming from North Korean issues," the finance ministry said in a release. "But the impact of such possible risks has been limited, given that foreign investment on the stock and bond markets remained stable."

Tensions around the Korean Peninsula have been rising as the US missile strike on Syria last week is being viewed as a clear warning to North Korea, which has made numerous threats of carrying out more nuclear and missile tests.

On Wednesday, the Seoul government held a meeting of related ministries and institutions in Seoul, including the Ministry of Strategy and Finance and the Bank of Korea, to check the market data and discuss ways to deal with unusual situations.

On Monday and Tuesday, the benchmark KOSPI sank 1.3 percent and the local currency dropped 1 percent against the US dollar, with the credit default swaps premium advancing to 57 basis points from 51.

On the other hand, foreigners purchased 349.7 billion won ($305.6 million) worth of local bonds over the two-day period, offsetting a foreign outflow of 204.9 billion won from the stock market.

The finance ministry said it will keep close tabs on the financial markets and take immediate market-stabilizing action if necessary. (Yonhap)