The head of South Korea's financial regulator has called for more vigilance on growing global debt, warning excessive accumulation of debt could spark a global financial crisis, his office said Friday.

Koh Seung-beom, chief of the Financial Services Commission (FSC), made the remark on Thursday as he joined a virtual plenary meeting of the Financial Stability Board (FSB), an organization made up of regulators from the Group of 20 countries to discuss cooperation.

"There has always been excessive accumulation of debt behind previous financial crises," Koh was quoted as saying by his Seoul office. "It is necessary to control the global debt increase."

"As financial interconnectivity has deepened, the chances are higher that a crisis can spread across sectors and borders." he said, underlining the need for global cooperation to stem such crisis transmission.

The FSB meeting came amid growing concerns over debt and inflation, as major economies have pumped in a large amount of liquidity to prop up growth in the face of sluggish demand due to the global coronavirus pandemic.

Participants discussed increasing household and corporate debt, and recent hikes in interest rates by major economies as factors that could destabilize the global financial system, according to the FSC.

The FSB agreed to have more discussions on the so-called "debt overhang" and exchange views on how to provide support for a smooth transition toward normalcy, the FSC said. (Yonhap)