South Korea's top financial regulator warned of greater financial market volatility on Tuesday, vowing to properly deal with it with a sense of alertness in order to ensure market stability.

The local market has suffered a setback, facing the double whammy of China's stock market rout amid concerns over its economic slowdown and resurfaced geopolitical risks over North Korea's fourth nuclear test. 

"Since the beginning of this year, a variety of external uncertainties have rendered the local market volatile," Financial Services Commission Chairman Yim Jong-yong said at a meeting with experts, held to hear their opinions on the government's reform measures for the new year.   

"Though the aftereffects of unfavorable global factors on the local market will be limited, we will be cautious and on alert while heeding chances of further increased volatility," he added. 

A pangovernmental task force will keep tabs on changing circumstances around the clock, and the financial authorities will closely communicate with investors at home and abroad, the regulator said.  

China's stock crash and other external negatives pounded the local financial market on Monday. The benchmark Korea Composite Stock Price Index plunged some 1.2 percent, with the local currency nosediving to the lowest level against the U.S. dollar in more than five years.

The top regulator also expressed his strong commitment to reforming the financial sector to better serve the people.

As part of these efforts, he put forth plans to introduce individual savings accounts and to strengthen private consulting services while vowing to lend support for the development of financial technologies and help relevant businesses advance into overseas markets.

"The performance-based wage system also must take root in the sector," Yim said. "We will take the initiative to spread such improvements to the private realm." (Yonhap)