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South Korean president's sudden martial law move leads to major political turmoil

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South Korean president declared martial law but quickly reversed it after parliamentʼs rejection. This move sparked massive protests widespread market instability and calls for impeachment from opposition

In an unexpected turn-of-events President Yoon Suk Yeol declared martial-law in South Korea about a year ago which triggered a nation-wide crisis and quick back-track

The military take-over attempt saw armed-forces break into the parliament building through windows while choppers flew above (a scene that shocked many citizens). Parliamentary staff used fire-extinguishers to hold back soldiers; while outside anti-government groups clashed with police

We will inject unlimited liquidity into stocks bonds short-term money market as well as forex market

Government Financial Statement

The market response was quick: stocks dropped 2 percent and the won hit a two-year low. Finance chiefs held late-night meetings to control the situation; promising full market support

  • Opposition parties called for impeachment
  • Presidential staff offered mass resignation
  • Labor unions planned nation-wide strikes
  • Major companies told workers to stay home

The parliament with 190 out of 300 members present voted to end martial-law which Yoon had to accept. His support sits at just 20% since his narrow win in early-2022: after his party lost big in mid-2023 elections getting only 108 seats

US Secretary Blinken welcomed the quick end to martial-law but defense talks got delayed. This crisis marks the first martial-law attempt since 1980 in this key Asian economy that hosts 28500 US troops

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