South Korea's Finance Minister Lee Hyung-il said on Friday that the country will consider further reducing government bond issuance if necessary, and pledged to continue closely monitoring market developments.

His remarks came as South Korea has decided to cut bond issuance by 5 trillion won (about $3.64 billion) in October, while the government has also promised to take stabilization measures including emergency bond buybacks if needed.

Lee discussed the issue at a meeting with Bank of Korea Governor Shin Hyun-song, Financial Services Commission Chairman Lee Eog-weon, Financial Supervisory Service Governor Lee Chan-jin, and Minister of Land, Infrastructure and Transport Hong Jee-sun.

This was the first such meeting Lee has held since taking office last month.

At the meeting, he said: "If high interest rates persist, companies with lower credit ratings could face a heavier refinancing burden. The government will continue to work with relevant institutions to closely monitor the bond market."

During the meeting, Lee also stressed the need to closely monitor the real estate market, noting that the pace of apartment price increases in Seoul has slowed for five consecutive weeks, while home prices outside the wealthy Gangnam area have continued to rise.

Lee also emphasized the need to continue implementing follow-up measures for won internationalization, and promised to announce steps to relax related regulations soon.