The head of the nation's financial watchdog has addressed concerns about the steady increase of interest rates, vowing to take market stabilization measures if needed.

Financial Services Commission(FSC) Chairman Yim Jong-yong made the remark at a financial reform committee meeting in Seoul on Monday, warning that the global financial market may fluctuate again as the incoming U.S. administration specifies its election pledges.

Yim said that after the U.S. presidential election, there is a possibility that inflation expectations will increase and the U.S. Fed will proceed to raise rates.

Citing concerns over possible commercial rate increases in South Korea, the watchdog chief said he will try to maintain the stability of the local financial market and be ready to swiftly take stabilization measures.

Regarding growing household debt, Yim said there are concerns that the recent rise in market interest rates will make it hard for people in the working class to pay off loans.

He said that along with the management of the household debt issue, the FSC will come up with supplementary measures, such as strengthening protection of loan defaulters and expanding financial assistance for the financially vulnerable groups and the working class.