South Korea will prepare market-stabilization measures if the impact of the U.S. Federal Reserve's rate increase causes excessive concentration in the domestic government bond market, including a sharp rise in Korean government bond yields. The Fed raised its policy rate by 0.25 percentage points to 3.75–4% on the 16th local time, its first increase in 3 years and 2 months, while signaling that additional increases remain possible. The government said the rate hike's market impact should be limited because overall financial conditions remain stable.