A senior South Korean official said on Tuesday that volatility is increasing in the global financial market amid growing fears over the novel coronavirus, but it is far from a crisis in the country's real economy.

Vice Finance Minister Kim Yong-beom said in a meeting with senior economic and financial officials that the government will swiftly take measures to stabilize its financial markets in case of increased volatility.

The vice minister said that due to the outbreak of the virus, major countries are witnessing drops in shares and interest rates of government bonds, and more investors are turning to safer assets to avert risk. 

Under the circumstances, Kim stressed the need to closely monitor the financial market, but cautioned against excessive fears.

He said the government will strongly deal with unfair trade and any spread of false information.