The chief of South Korea’s financial regulator vowed to stabilize financial markets as the country moves to restructure its major industries.

Financial Services Commission(FSC) Chairman Yim Jong-yong made the comments on Wednesday at a meeting of a panel set up to reform South Korea's financial markets in Yeouido, Seoul.

Yim added that state-run banks hold most of the credit of firms that are likely to undergo creditor-led restructuring, stressing non-state financial institutions should continue operations and pursue innovative reforms.

He also said if corporate bond markets "became troubled,” financial authorities would immediately support medium-sized firms with market stability measures including possibly guaranteeing primary collateralized bond obligations(CBO). A CBO is a type of structured asset-backed security.