South Korea’s top financial regulator has emphasized the necessity of maintaining a market stabilization system to efficiently respond to economic uncertainties.

Presiding over a Financial Services Commission(FSC) meeting on financial market reform on Friday, FSC Chairman Yim Jong-yong said the South Korean financial market has been regaining stability from the aftermath of Britain’s decision last week to leave the European Union(EU).

However, Yim stressed that the uncertainty surrounding the South Korean economy in the second half of the year has reached the point where it is difficult to predict how circumstances at home and abroad will change.

Yim cited a continuing decline in exports, low prices, as well as low birthrates and the fast ageing population as taking a toll on South Korea’s potential growth rate.

He emphasized that South Korea needs to stabilize the financial system more firmly when it is faced with such challenges.

Yim assured that the government will gradually, but carefully, prepare itself for the uncertainties surrounding the global economy while swiftly and actively deal with the changing situations of the financial market.