Police stand guard in front of the main entrance of the National Assembly in Seoul on December 3, 2024 after South Korean President Yoon Suk Yeol declared emergency martial law. South Korean President Yoon declared emergency martial law on December 3, saying the move was necessary to protect the country from “communist forces” amid a parliamentary spat over the budget bill.
Jung Yeon-J | Afp | Getty Images
South Korean stocks fell in the US on Tuesday after President Yoon Suk Yeol declared emergency powers and declared martial law, raising fears of instability in the world’s 13th largest economy.
The iShares MSCI South Korea ETF, It tracks more than 90 large and mid-sized companies in South Korea, which fell 6% to a 52-week low.
American depositary receipts (ADRs) of Korea Electric Power fell 5% and Korean e-commerce giant Koupong fell 6%. Shares of KT Corp., formerly Korea Telecom, fell 3%. South Korean steelmaker POSCO declined more than 6%.
President He accused opposition parties of sympathizing with North Korea and controlling Parliament. Yoon did not specify how martial law – a temporary rule by military authorities during a state of emergency – would affect governance and democracy in the country.
According to local media reports, the Korea Exchange announced it would hold an emergency meeting to “prepare response measures” and then decide whether the market would open on Wednesday.
The US dollars vs. jumped 1.9% South Korea won on Tuesday.
– Reporting contribution by CNBC’s Hakyung Kim.
