The Financial Services Commission(FSC) emphasized risk management to prepare for a plunge in asset markets ahead of approaching rate hikes.

The agency warned of risks surrounding a rate hike and its considerable impact on virtual assets and real estate. 

In a virtual risk response meeting on Friday, FSC Vice Chairman Doh Kyu-sang said that various signals indicate an impending rate increase and that now is the time for risk management.

The Bank of Korea has mentioned a coming rate hike since May, going as far as to say it could happen within this year, while the U.S. Federal Reserve in June floated the word "tapering," or reducing bond purchases.

The vice chair said the prevailing view is that, unlike the stock market backed by firm fundamentals, the virtual asset and real estate markets could be considerably affected by global fiscal tightening. 

He also promised government efforts to manage household debt and asked the banking sector to run loan programs based on clients' repayment ability.