South Korea to prepare for market impact of Fed interest rate hikes

Vice minister Ko Hyoung-kwon added the government will closely monitor financial markets and changes in U.S. monetary policy for volatility that may arise from Fed's plans to reduce its bond holdings.

The U.S. Federal Reserve lifted interest rates for the third time this year to 1.5 percent on Wednesday, as anticipated, and maintained its forecast for three rate hikes next year.

(Reporting by Cynthia Kim and Dahee Kim; Editing by Eric Meijer)