SEOUL - South Korea's financial regulator said on Wednesday it would maintain its market stabilising tools, including a bond market stabilisation fund of 20 trillion won ($14.19 billion), next year to be prepared for any increase in volatility.

The government and state-run financial institutions will extend a total of 37.6 trillion won worth of liquidity measures for bond and short-term money markets through 2025, the Financial Services Commission said.

The measures include a bond market stabilisation fund of a maximum 20 trillion won, according to the Commission.

"Market volatility slightly heightened recently due to the so-called 'Trump trade'," Kim So-young, the Commission's vice chairman, said, adding that there was a need to be prepared for higher uncertainty.

U.S. Treasury yields have been rising sharply since October and last week hit the highest in four months on expectations that under a Donald Trump administration policies of imposing tariffs, restricting immigration and cutting taxes would reignite inflationary pressure.

The Commission also decided to extend its measures of easing financial regulations on real estate project financing until the end of June 2025.

($1 = 1,409.2500 won)

(Reporting by Jihoon Lee Editing by Ed Davies)