Finance Minister Choi Sang-mok speaks during an economic ministers' meeting in the central administrative city of Sejong on June 3, 2024. (Yonhap)

Finance Minister Choi Sang-mok on Thursday called for beefing up an "external safety net" to better respond to uncertainties regarding interest rates in the United States and other nations.

Choi made the remarks during an emergency macroeconomic meeting meant to assess the Federal Reserve's rate-setting meeting Wednesday, where it kept the benchmark interest rate at between 5.25-5.5 percent for a seventh straight time.

The Fed also signaled fewer rate cuts than previously estimated.

"Uncertainties continue over when and how much the US will cut interest rates. We cannot rule out the possibility of growing volatility in the global financial market," Choi said, calling for extra vigilance and close cooperation among institutions concerned.

Choi stressed the need to strengthen external safety valves against such uncertainties, and the government will swiftly come up with tax incentives and other measures to support companies and the people.

The Fed's latest freeze put the gap between the key rates of South Korea and the US at up to 2 percentage points.

The Bank of Korea said the latest decision by the Fed "was a bit more hawkish than market expectations" as Fed Chair Jerome Powell took a prudent stance by saying that it would take longer to get the confidence needed to loosen the policy despite the substantial progress regarding inflation recently.

"The Fed is expected to make a decision on interest rates based on economic indicators, which could make market volatility grow bigger frequently. We will continue close monitoring of the financial and foreign exchange markets at home and abroad," BOK Deputy Gov. Park Jong-woo said during a separate meeting with officials. (Yonhap)