Seoul: Top financial authorities on Tuesday attributed the previous day's sharp drop in the stock market to short-term profit-taking rather than structural concerns, emphasizing that financial markets remain "solid."

According to Yonhap News Agency, the finance ministry cited assessments made during a macroeconomic policy meeting chaired by First Vice Finance Minister Lee Hyoung-il. The meeting included senior officials from the Bank of Korea, the Financial Services Commission, and the Financial Supervisory Service.

On Monday, the benchmark Korea Composite Stock Price Index (KOSPI) tumbled 274.69 points, or 5.26 percent, to close at 4,949.67, breaking a four-session winning streak. Participants in Tuesday's meeting noted the decline reflected a risk-averse mood following the nomination of the new U.S. Federal Reserve chair, coupled with short-term profit-taking after recent KOSPI gains, according to the ministry.

They also pointed out that exports surged at the fastest pace in 56 months in January and that consumer sentiment exceeded the baseline for nine consecutive months, indicating that the economic recovery is continuing.