A television screen shows a news broadcasting of South Korean President Yoon Suk Yeol delivering a speech on emergency martial law, in Goyang, northwest of Seoul, on December 3, 2024.
Jung Yeon-je | Afp | Getty Images
South Korea’s won on Tuesday fell sharply against the U.S. dollar shortly after President Yoon Suk Yeol declared an emergency marital law.
“I declare martial law to protect the free Republic of Korea from the threat of North Korean communist forces, to eradicate the despicable pro-North Korean anti-state forces that are plundering the freedom and happiness of our people, and to protect the free constitutional order,” Yoon said, according to Reuters.
The U.S. dollar was last seen trading up 1.9% against the won, which notched a fresh two-year low on the news.
Speaking during an unannounced televised briefing, South Korea’s Yoon accused opposition lawmakers of controlling the parliament and throwing the country into a political crisis.
Yoon leads South Korea’s conservative People Power Party and has been deadlocked in negotiations with the liberal opposition Democratic Party over the 2025 budget bill.
It wasn’t immediately clear how the emergency measure would influence the country’s governance and democracy over the coming weeks.
The MSCI South Korea ETF fell more than 4% on the news, notching a new 52-week low, while the Franklin FTSE in South Korea slipped 3%.
U.S.-listed shares of Korean-based firms were also lower. Shares of Coupang and Posco Holdings were both off around 6%, while KT Corp and KB Financial slipped 3% and 1%, respectively.
Yoon assumed office in May 2022 shortly after winning the presidential election by the narrowest margin in the country’s history.
His foreign policy stance has been dominated by a hardline stance on North Korea, while seeking to strengthen ties with the U.S. and Japan.
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