The nation's financial watchdog has vowed to closely monitor market movements at home and abroad and sternly respond to market disrupting activities.

The Financial Supervisory Service convened a meeting Monday to inspect the market situation and discussed the impact from the recent stock price plunges in Korea and abroad, and foreign funds exiting from the domestic bourse.

The agency's senior deputy governor Yoo Kwang-yeol who chaired the meeting cited the concern of a slowdown in global economic growth due to a number of reasons, including the U.S. Federal Reserve's rate hike, China-U.S. trade tensions and financial instability in emerging markets.

He said this concern was dealing a toll on share prices in major economies.

Yoo said the repercussions could be more significant in South Korea as its economic and financial markets are more open to the wider world.

He promised to monitor financial market trends around the globe, as well as the flow of foreign investment through an around-the-clock emergency response system.

He also pledged to double check and upgrade a contingency plan designed to preemptively tackle insecurities if and when they materialize.