Financial authorities in South Korea have assessed that the breakdown of last week's U.S.-North Korea summit will have a "limited" effect on both the domestic and international financial markets.

First Vice Finance Minister Lee Ho-seung said on Monday during a meeting with officials from the central bank and other financial agencies that considering the temporary and limited impact of North Korea factors in the past, the Hanoi summit will not have a big impact on the domestic market.

Lee also referred to the upturn sighted in most of the major stock markets around the world last Friday, a day after shares fell following the Hanoi summit.

Amid lingering uncertainties over trade talks between the U.S. and China, Brexit and a slowing global economy, the minister cautioned against short-term expansion of volatility.

He added that South Korea's solid fundamentals, such as the current account surplus and foreign exchange reserves, are key factors that can enable the country to handle volatility.