South Korea's central bank held a meeting to check the effects of crashes in the stock markets of the U.S. and other major countries. 

The Bank of Korea said it held a meeting on Wednesday morning to discuss the reasons for the crashes and their possible effects on the local financial and foreign exchange markets. 

In the meeting chaired by Senior Deputy Governor Yoon Myun-shik, the participants assessed that volatility in the global financial market has significantly increased due to diverse political and economic factors. 

They said South Korea's capability to absorb external shocks remains strong and that recently the domestic stock market and foreign exchange rates stayed relatively stable. 

The central bank said it will closely monitor the global and domestic markets and movements of capital flow and seek proper measures to stabilize the market in cooperation with the government if necessary.  

The Dow Jones Industrial Average and the tech-rich Nasdaq Composite Index tumbled more than two percent on Christmas Eve.