From CNBC: 2024-12-03 11:35:59

South Korea’s President Yoon Suk Yeol declared emergency martial law to protect against “communist forces,” leading to a standoff with lawmakers over a budget bill. The ETF experienced its fifth consecutive day of losses with heavy trading volume. Major Korean companies like Korea Electric Power and Coupang saw significant drops in their shares.

Lawmakers quickly gathered to overturn Yoon’s martial law declaration. The president accused opposition parties of sympathizing with North Korea. The White House National Security Council is closely monitoring the situation. Political activities inciting disorder are banned under martial law, a first since 1980.

The Korea Exchange called an emergency meeting to discuss response measures. The U.S. dollar surged 1.9% against the South Korean won following the martial law declaration. Posco, a South Korean steel manufacturer, saw a decline of over 6% in its shares. The impact of martial law on governance and democracy remains unclear.

Read more: South Korean stocks rocked in U.S. trading after martial law declared